9.3 Short-Run Decisions Assume the Following Total Cost Schedule for a Perfectly Competitive

question 60

Multiple Choice

9.3 Short-Run Decisions
Assume the following total cost schedule for a perfectly competitive firm.
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)$100; $70
• B)$70; $35
• C)$50; $50
• D)$140; $40
• E)$85; $35

---

Definitions:

Responsibility Accounting System

An accounting system that measures the results of each responsibility center and relates them to managers responsible for those centers.

Controllable Costs

Expenses that can be modified or managed by a decision-maker within an organization, including costs like supplies and advertising.

Managerial Level

Refers to the different layers of management within an organization, each level with specific responsibilities for various aspects of the business's operations.

Manufacturing Companies

Businesses involved in the transformation of goods, materials, or substances into new products through processes and operations.