Use the Following to Answer Question

question 42

Multiple Choice

Use the following to answer question:
-(Table: Output and Marginal Cost) Use Table: Output and Marginal Cost.After graduation,you achieve your dream of opening an art shop that specializes in selling mud statues.How many statues should you produce to minimize your average variable costs?

• A)two
• B)three
• C)four
• D)five

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Definitions:

Cash Inflows

Money or assets that come into a company, typically through sales, financing, or investments.

NPV

Net Present Value, a calculation that represents the difference between the present value of cash inflows and the present value of cash outflows over a period of time.

Discount Rate

The interest rate that a central bank charges financial institutions for short-term loans, or used in discounted cash flow (DCF) analysis to present value future cash flows.

APR

The Annual Percentage Rate, which is the interest rate for a whole year on a loan, including fees.