A Firm's Average Total Cost Is $80, Its Fixed Cost

question 155

Multiple Choice

A firm's average total cost is $80, its fixed cost is $1000, and its output is 100 units. Its average variable cost

• A) is less than $40.
• B) is between $40 and $60.
• C) is more than $60.
• D) cannot be determined without more information.

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Definitions:

Articles of Confederation

The original constitution of the 13 American states, adopted in 1781, which was eventually replaced by the U.S. Constitution in 1789.

Draft Constitution

A preliminary version of a constitution that outlines the fundamental principles and laws of a political entity that is subject to review, modification, and approval.

Shays' Rebellion

An armed uprising in Western Massachusetts and Worcester in response to a debt crisis among the citizenry and in opposition to the state government's increased efforts to collect taxes both on individuals and their trades.

Debt Relief

A measure or process through which a portion or all of someone's debt is forgiven or restructured to reduce the financial burden on the debtor.