A Firm's Average Variable Cost Is $60, Its Total Fixed

question 205

Multiple Choice

A firm's average variable cost is $60, its total fixed cost is $3,000, and its output is 600 units. Its average total cost is

• A) less than $58.
• B) between $58 and $62.
• C) between $62 and $64.
• D) more than $64.

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Definitions:

Frontal Lobe

The part of the brain located at the front of each cerebral hemisphere, associated with reasoning, motor skills, higher-level cognition, and expressive language.

Synaptic Activity

Synaptic Activity refers to the process by which neurons communicate with each other through the release and reception of neurotransmitters at the synapse.

Limbic System

Part of the brain involved with emotions and olfaction; includes the cingulate gyrus, hippocampus, habenular nuclei, parts of the basal ganglia, the hypothalamus (especially the mammillary bodies, the olfactory cortex, and various nerve tracts).

Sensory Input

Information received by the sensory organs and transmitted to the brain.