Suppose a Firm Is Producing 10 000 Units of Output

question 100

Multiple Choice

Suppose a firm is producing 10 000 units of output.At this level of output,average total cost is $200 and average fixed cost is $20.It can be concluded that total variable cost is

• A)$180.
• B)$1800.
• C)$18 000.
• D)$180 000.
• E)$1 800 000.

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Definitions:

Equipment

Equipment consists of the necessary tools, machinery, and other material goods required for performing specific tasks or operations within various contexts, such as a business or workshop.

Receivables

Short-term amounts due to a company from its customers, typically from sales of goods or services on credit.

Accounts Receivable

Money owed to a company by its customers for products or services that have been delivered but not yet paid for.

Inventory

The total amount of goods or materials a business has in stock, potentially for sale or production.