Answer the Question on the Basis of the Following Cost

question 368

Multiple Choice

Answer the question on the basis of the following cost data. The average variable cost of producing 3 units of output is

• A)$8.
• B)$24.
• C)$16.
• D)$12.

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Definitions:

Import-Competing Industries

Sectors within an economy that produce goods or services in direct competition with imports, often affected by trade policies.

Comparative Advantage

The capacity of a person, business, or nation to generate a product or service with a lesser opportunity cost compared to rivals.

Opportunity Costs

The price paid for not selecting the next most favorable option when deciding.

Constant Opportunity Costs

A scenario where the cost of forgoing the next best alternative remains the same regardless of the level of production.