The Wacky Widget Company Has Total Fixed Costs of $100,000

question 287

Multiple Choice

The Wacky Widget company has total fixed costs of $100,000 per year. The firm's average variable cost is $10 for 10,000 widgets. At that level of output, the firm's average total costs equal

• A)$10
• B)$15
• C)$20
• D)$25

---

Definitions:

Compressed Workweek

A work schedule that allows employees to work full-time hours in fewer than the conventional five days, often aiming to improve work-life balance.

10-Hr Days

Work schedules that consist of ten hours of work per day, often part of an alternative workweek scheduling to allow for longer weekends or other benefits.

Competence

The ability to do something successfully or efficiently, often referring to a specific skill or area of knowledge.

Self-Determination

The process by which individuals control their own life, make their own choices, and pursue their genuine interests without undue external influence.