Mullennex Corporation's Relevant Range of Activity Is 2,000 Units to 6,000

question 95

Multiple Choice

Mullennex Corporation's relevant range of activity is 2,000 units to 6,000 units. When it produces and sells 4,000 units, its average costs per unit are as follows: If 5,000 units are produced, the average fixed manufacturing cost per unit produced is closest to:

• A) $2.40
• B) $2.70
• C) $3.00
• D) $3.75

Understand how changes in the price of complementary and substitute goods affect demand.

Recognize the effects of income changes on the demand for normal and inferior goods.

Predict market outcomes (e.g., surplus, shortage) from given shifts in supply and/or demand.

Understand the differences and purposes of different types of contracts (C.I.F., F.O.B., C.O.D.).