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

question 372

Multiple Choice

Wilbur's Widgets, a widget company, produces 100 widgets. Its average fixed cost is $6 and its total variable cost is $400. The total cost of producing 100 widgets is

• A) $306.
• B) $400.
• C) $600.
• D) $1,000.

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Definitions:

Full Employment

A situation where all available labor resources are being used in the most economically efficient way.

Ppf (Production Possibility Frontier)

A curve depicting the maximum possible output of two goods or services that can be produced with a fixed set of resources and technology, assuming all resources are fully employed.

Consumer Goods

Products and services that are purchased by individuals for personal use or consumption rather than for resale or manufacturing.

Capital Goods

Long-term assets used by businesses to produce goods and services, such as machinery, buildings, and equipment.