Exhibit 7-9 Cost Schedule for Firm X -As Shown in Exhibit 7-9, the Total Cost of Producing

question 6

Multiple Choice

Exhibit 7-9 Cost schedule for firm X $$\begin{array} { | c | c | c | } \hline \begin{array} { c } \text { Output } \\\text { Quantity }\end{array} & \begin{array} { c } \text { Total Fixed } \\\text { Cost }\end{array} & \begin{array} { c } \text { Total Variable } \\\text { Cost }\end{array} \\\hline 0 & \$ 100 & \$ 0 \\1 & 100 & 50 \\2 & 100 & 84 \\3 & 100 & 108 \\4 & 100 & 127 \\5 & 100 & 150 \\\hline\end{array}$$
-As shown in Exhibit 7-9, the total cost of producing 5 units is:

• A) zero.
• B) $227.
• C) $250.
• D) $100.

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Definitions:

Parent Company

A corporation that owns a majority of the shares of another company, thus controlling management and operations.

Controlled Company

A company in which a majority of its stock is owned or its operations are controlled by another entity.

Investee Company

A company in which another company (the investor) holds a significant stake but does not have controlling interest.

Parent Company

An entity that owns enough voting stock in another corporation to control its management and operations.