When Output Is 50, Fixed Costs Are $1,000, and Variable

question 115

Multiple Choice

When output is 50, fixed costs are $1,000, and variable costs are $2,000, what is the average total cost?

• A) $20
• B) $40
• C) $60
• D) $80

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Definitions:

Wrongful

Actions or behavior that are illegal, unjust, or not correct according to law or equity.

Unfair

Activities or practices that are unjust, dishonest, or not in accordance with equity or good conscience.

Mistake

An erroneous belief or misunderstanding about something, which can affect the validity of a contract if it's fundamental.

Raffles V. Wichelhaus

A landmark case in contract law dealing with mutual mistake and the importance of clear terms in agreements, specifically relating to the "Peerless" ship.