Use the Following to Answer Questions

question 337

Multiple Choice

Use the following to answer questions:
-(Table: Cakes) Look at the table Cakes. Pat is opening a bakery to make and sell special birthday cakes. She is trying to decide how many mixers to purchase. Her estimated fixed and average variable costs if she purchases one, two, or three mixers are shown in the table. Assume that average variable costs do not vary with the quantity of output. If Pat purchases two mixers and bakes 100 cakes per day, what is her average fixed cost?

• A) $10,000
• B) $1,000
• C) $15
• D) $10

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Definitions:

Hot Dog

A cooked sausage, traditionally grilled or steamed and served in a sliced bun as a sandwich.

Duty of Care

Legal obligation to act with a level of caution and attention to prevent harm to others.

Standard of Care

The degree of prudence and caution required of an individual who is under a duty of care, often used in legal contexts to assess negligence.

Volenti Non Fit Injuria

Voluntary assumption of the risk of injury.