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

question 129

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 total fixed cost as:

• A)$5
• B)$15
• C)$50,000
• D)$37,500

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Definitions:

Rent Controls

Rent controls are government policies that limit the amount landlords can charge for leasing apartments or houses, aimed at making housing more affordable for renters.

Housing

Refers to the residential accommodations available for individuals or families, including houses, apartments, and other living spaces.

Rents

Payments made for the use of property or land. In economics, it can also refer to income derived from the ownership of scarce resources.

Law Of Supply

A principle stating that, all else being equal, an increase in price results in an increase in quantity supplied.