The Wacky Widget Company Has Total Fixed Costs of $100,000

question 287

Multiple Choice

The Wacky Widget company has total fixed costs of $100,000 per year. The firm's average variable cost is $10 for 10,000 widgets. At that level of output, the firm's average total costs equal

• A)$10
• B)$15
• C)$20
• D)$25

Understand the concept of time-based competition and its importance in business strategy.

Grasp the impact of Product Lifecycle Management (PLM) on product design and overall product development.

Analyze the pros and cons of using modular assemblies in manufacturing and their applicability to service products.

Identify and describe external product development strategies.

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Definitions:

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Output Device

A device that sends processed data and information out of a computer in the form of text, pictures (graphics), sounds (audio), or video.

Motherboard

The main printed circuit board in a computer that connects and allows communication between various components.

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The metal or plastic case that holds all the physical parts of the computer together, including the computer’s processor (its brains), its memory, and the many circuit boards that help the computer function.