Ace Card Company Has Variable Costs of $0

question 71

Multiple Choice

Ace Card Company has variable costs of $0.40 per unit of product. The remainder of its production costs are fixed. In May, the volume was 12 000 units and the total production costs were $6 900. How much are the fixed costs?

• A)$2 100
• B)$2 025
• C)$1 950
• D)$2 200

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Definitions:

Unemployment

The situation when people who are willing to work at current wage rates cannot find jobs.

Aggregate Demand

Aggregate demand represents the total quantity of all goods and services demanded by the economy at various price levels, in a given period of time.

Phillips Curve

A financial principle illustrating a reverse correlation between unemployment levels and inflation rates within an economy.

Aggregate Demand (AD)

The total demand for all goods and services within an economy at different price levels, during a specific time period.