A Firm Produces 100 Units of Output at a Total

question 21

Multiple Choice

A firm produces 100 units of output at a total cost of $1,900. If fixed costs are $100,

• A)average fixed cost is $19.
• B)average variable cost is $18.
• C)average total cost is $20.
• D)average total cost is $21.

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Definitions:

Mandatory Helmet Law

Legislation requiring the wearing of helmets in certain activities or contexts, often to enhance safety.

Motorcycle Fatalities

Deaths resulting from accidents involving motorcycles.

Independent Variable

A factor manipulated by the experimenter to investigate its effects on the dependent variable in a study.

Factorial Design

A design in which all levels of each independent variable are combined with all levels of the other independent variables. A factorial design allows investigation of the separate main effects and interactions of two or more independent variables.