Refer to the Table Shown A) $5
B) $10

question 26

Multiple Choice

Refer to the table shown. The average total cost of producing 5 units of output is: $\begin{array}{|c|c|}\hline \text { Units of output } & \text { Total cost } \\\hline 0 & 5 \\\hline 1 & 11 \\\hline 2 & 16 \\\hline 3 & 20 \\\hline 4 & 23 \\\hline 5 & 25 \\\hline 6 & 26 \\\hline\end{array}$

• A) $5.
• B) $10.
• C) $15.
• D) $25.

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Definitions:

Freedom of Contract

The principle that individuals have the liberty to enter into agreements as they choose without unjust government interference.

Noncompetition Clause

A provision in a contract that prohibits one party from competing with another party for a certain period of time and within a certain geographic area.

Legitimate Business Purpose

A rational, honest intention or objective behind a business action or decision, often considered in legal contexts to validate transactions.

Geographic Area

A specific portion of the Earth's surface defined by natural or artificial boundaries, characterized by distinct physical, administrative, or cultural properties.