A Firm Has Fixed Costs of $30,000 Per Year, Depreciation

question 153

Multiple Choice

A firm has fixed costs of $30,000 per year, depreciation of $10,000 per year, a price per unit of $50, and an accounting break-even point of 2,000 units. What is the firm's marginal cost at the accounting break-even point?

• A) $12
• B) $15
• C) $20
• D) $25
• E) $30

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