A Firm Produces 300 Units of Output at a Total

question 38

Multiple Choice

A firm produces 300 units of output at a total cost of $1,000. If fixed costs are $100,

• A)average fixed cost is $10.
• B)average variable cost is $3.
• C)average total cost is $4.
• D)average total cost is $5.

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Definitions:

Accounts Receivable

Monies owed to a company by customers for sales made on credit that are recorded as assets on the balance sheet.

General Journal

A foundational accounting record that keeps chronological entries of a company's transactions.

T-Accounts

A visual representation used in accounting to depict the debits and credits for each financial transaction affecting a particular account.

T-Accounts

T-Accounts are a form of accounting ledger that visually represents the debits and credits of financial transactions for each account in double-entry bookkeeping.