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:

Hedge Fund Fee Structure

The compensation arrangement between hedge funds and their managers, typically involving a management fee plus a performance fee based on the fund's returns.

Management Fee

A charge levied by an investment manager for managing an investment fund's portfolio of securities.

Incentive Fee

A fee charged by hedge funds equal to a share of any investment returns beyond a stipulated benchmark performance.

Incentive Fees

Incentive fees are payments made to fund managers for generating positive returns, usually a percentage of the investment profit above a specific benchmark.