A Firm's Average Total Cost Is $80, Its Average Variable

question 42

Multiple Choice

A firm's average total cost is $80, its average variable cost is $75, and its output is 50 units. Its total fixed cost is

• A) less than $100.
• B) between $100 and $200.
• C) between $200 and $300.
• D) more than $300.

Understand the theory of planned behavior and its components.

Recognize the impact of external influences on personal decisions and behaviors.

Understand the importance of attitude accessibility in predicting behavior.

Analyze the role of subjective norms in influencing behaviors.

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Definitions:

Manufacturing Costs

The total expense involved in the manufacture of a product, including direct materials, direct labor, and manufacturing overhead.

Product Costs

Costs that are directly attributable to the creation of products including direct labor, direct materials, and manufacturing overhead.

Lean Production

A management approach that organizes resources such as people and machines around the flow of business processes and that only produces units in response to customer orders.

Inventories

Items such as raw materials, work-in-progress, and finished goods that a company holds for sale in the ordinary course of business.