Estimate by Using Front-End Rounding

question 95

Multiple Choice

Estimate by using front-end rounding.
-

• A)140
• B)10
• C)20
• D)14

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Definitions:

Variable Costs

Costs that change in proportion to the level of goods or services that a business produces.

Profit-maximizing Output

The level of production at which a firm achieves the highest profit, where marginal revenue equals marginal cost.

Marginal Cost

The expenditure required to produce an extra unit of a good or service.

Fixed Cost

A cost that does not change with an increase or decrease in the amount of goods or services produced.