Wilbur's Widgets, a Widget Company, Produces 100 Widgets

question 206

Multiple Choice

Wilbur's Widgets, a widget company, produces 100 widgets. Its average fixed cost is $5 and its total variable cost is $300. What is the total cost of producing 100 widgets?

• A) $300
• B) $305
• C) $500
• D) $800

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Definitions:

Tax Breaks

Financial discounts or incentives in the form of reduced tax rates, tax exemptions, or tax deductions provided by the government to encourage certain activities or investments.

Private-Sector Economic Risks

These are risks faced by businesses or individuals in the private sector that can impact economic performance, such as market fluctuations or changes in consumer demand.

Size And Scope

Refers to the scale and breadth of a business or project, including its capacities, reach, and the extent of activities covered.

Government

An organized system that provides leadership and governance, enforces laws, and administers public policy and services to its citizens.