(Figure: Cost and Quantity of Output II)

question 2

Multiple Choice

(Figure: Cost and Quantity of Output II)
The variable cost of producing an output of 12 is $____.

• A) 70
• B) 30
• C) 20
• D) 0

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Definitions:

Budget Goal

A financial objective set during the budgeting process, aiming for specific income, expenditure, or savings targets over a period.

Straight Line Pay

Compensation structure where employees receive a fixed, regular payment or salary, typically without variation for actual hours worked or performance levels.

Managers' Incentives

Various forms of compensation and rewards designed to motivate managers to align their actions with the objectives of the owners or shareholders.

Perverse Incentive

An incentive that unintentionally encourages negative or undesired behaviors, leading to outcomes that are contrary to the initial intentions.