Assume the Following Total Cost Schedule for a Perfectly Competitive

question 20

Multiple Choice

Assume the following total cost schedule for a perfectly competitive firm. $$\begin{array} { | c | c | c | } \hline \text { Output } & \text { TVC } ( \$ ) & \text { TFC } ( \$ ) \\\hline 0 & 0 & 100 \\\hline 1 & 40 & 100 \\\hline 2 & 70 & 100 \\\hline 3 & 120 & 100 \\\hline 4 & 180 & 100 \\\hline 5 & 250 & 100 \\\hline 6 & 330 & 100 \\\hline\end{array}$$ TABLE 9- 2
-Refer to Table 9- 2.If the firm is producing at an output level of 2 units,the ATC is _ and the AVC is _ .

• A)$140; $40
• B)$50; $50
• C)$85; $35
• D)$100; $70
• E)$70; $35

Recognize the legal obligations and duties between agents and principals.

Comprehend the requirements and implications of specific types of agency relationships, such as gratuitous agency.

Identify the tort liabilities arising from an agent’s actions and the principal's responsibilities in such cases.

Understand the concept of authority in agency relationships, including apparent, express, and implied authority.

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Definitions:

Net Operating Income

A financial metric that represents the profit a company generates from its operations, excluding expenses from interest and taxes.

Absorption Costing

A method of accounting for the total cost of production, including fixed and variable costs, to value inventory.

Variable Costing

A method of accounting that exclusively accounts for variable production expenses—direct materials, labor directly assigned to production, and variable manufacturing overhead—when calculating the cost of products.

Absorption Costing

An accounting method that includes all manufacturing costs, both fixed and variable, in the cost of a product, required for external reporting in many jurisdictions.