Joshua Company Produces and Sells a Product That Has Variable

question 56

Multiple Choice

Joshua Company produces and sells a product that has variable costs of $7 per unit and fixed costs of $200,000 per year.If production increases from 20,000 units to 25,000 units, the unit cost will _____.

• A)increase by $35,000
• B)decrease by $8 per unit
• C)decrease by $2 per unit
• D)not change

---

Definitions:

Wealth Concentration

The scenario where a small percentage of people or entities hold a large portion of total wealth in a society.

Income Distribution

Refers to how a country’s total GDP is spread amongst its population, affecting economic equality and citizens' standard of living.

Last Three Decades

Refers to the most recent thirty-year period. Depending on context, this can relate to economic trends, technological advancements, or societal changes that have occurred within that timeframe.

Median Income

The income amount that divides a population into two equal groups, half having an income above that amount and half below, serving as a measure of central tendency.