The Average Total Cost of Producing Cell Phones in a Factory

question 223

Multiple Choice

The average total cost of producing cell phones in a factory is $20 at the current output level of 100 units per week. If fixed cost is $1,200 per week:

• A) average fixed cost is $20.
• B) total cost is $3,200.
• C) variable cost is $2,000.
• D) average variable cost is $8.

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Definitions:

Shoplifting

The act of stealing goods from a store while pretending to shop.

Soundtrack

The audio component, including music, dialogue, and sound effects, accompanying a movie, game, or video.

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The minimum stimulus intensity required for a stimulus to be detected at least 50% of the time.

Gustav Fechner

A German philosopher, physicist, and experimental psychologist who founded psychophysics, quantitatively measuring the relation between physical stimuli and the sensations and perceptions they affect.