Use the Following to Answer Questions

question 274

Multiple Choice

Use the following to answer questions:
Figure: Short-Run Costs II
-(Figure: Short-Run Costs II) Look at the figure Short-Run Costs II. At 6 units of output, average total cost is approximately:

• A) $100.
• B) $120.
• C) $170.
• D) $250.

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Definitions:

Retailers

Businesses that sell goods or commodities directly to consumers.

Wholesalers

Businesses that buy goods in large quantities from manufacturers and sell them in smaller quantities to retailers or other businesses.

Drop Shipping

A retail fulfillment method where a store doesn't keep the products it sells in stock but instead transfers customer orders and shipment details to either the manufacturer or a wholesaler, who then ships the goods directly to the customer.

Furniture Maker

An individual or company that specializes in designing and manufacturing furniture.