Fremont,which Uses the High-Low Method,reported Total Costs of $10 Per

question 52

Multiple Choice

Fremont,which uses the high-low method,reported total costs of $10 per unit at its lowest production level,5,000 units.When production tripled to its highest level,the total cost per unit dropped to $5.Fremont would estimate its variable cost per unit as

• A)$2.50.
• B)$5.00.
• C)$15.00.
• D)negative $0.0005.

---

Definitions:

Great Depression

A severe worldwide economic downturn during the 1930s, marked by prolonged unemployment, deflation, and significant declines in economic activity.

Economic Principle

Fundamental concepts that underpin the study and practice of economics, such as supply and demand or the cost-benefit analysis.

Productive Capacity

The maximum output a firm or economy can produce with its current level of resources and technology.

Efficient

The optimal use of resources to achieve the best possible outcome or output with minimal waste or effort.