At 1,000 Units of Output, Total Cost Is $42,000 and Total

question 201

Multiple Choice

At 1,000 units of output, total cost is $42,000 and total variable cost is $34,000. At 1,000 units of output, what is the value of average total cost, average variable cost, and average fixed cost, respectively?

• A)$22; $14; $8
• B)$42; $34; $8
• C)$4.20; $3.40; $0.80
• D)$340; $740; $60
• E)$42; $34; There is not enough information provided to determine the average fixed cost.

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Definitions:

Social Security

A government program that provides financial assistance to retirees, disabled individuals, and their dependents.

Cyclically Balanced

A fiscal policy strategy where government budgets are planned to balance over the business cycle, running surpluses in boom years and deficits during recessions.

Federal Deficits

The financial shortfall that occurs when a government's expenditures exceed its revenues in a given fiscal year.

Great Depression

A severe worldwide economic downturn that took place during the 1930s, marked by devastating economic contraction, high unemployment, and deflation.