Refer to Data Below A) €250
B) €5

question 52

Multiple Choice

Refer to data below. The average fixed cost of producing four units is ?
$\begin{array}{|c|c|c|c|c|}\hline \text { Quantity of } & \text { Fixed Costs } & \text { Variable} & \text { Total Costs } & \text {Marginal Costs } \\ \text {Output } && \text {Costs } \\\hline 0 & € 10 & € 0 \\\hline 1 & 10 & 5 \\\hline 2 & 10 & 11 \\\hline 3 & 10 & 18 \\\hline 4 & 10 & 26 \\\hline 5 & 10 & 36 \\\hline\end{array}$

• A) €2.50.
• B) €5.
• C) €9
• D) €26.
• E) €40.

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Definitions:

Market Demand

is the total amount of a product or service that consumers in a market are willing and able to purchase at different prices, during a certain time period.

Deadweight Loss

A loss of economic efficiency that occurs when the equilibrium for a good or service is not achieved or is unattainable.

Market Equilibrium

An equilibrium where market demand matches supply, causing price stability.

Government Expenditures

The total amount of money spent by the government within a specific period, including spending on goods, services, and public projects.