At 1,000 Units of Output, Total Cost Is $42,000 and Total

question 201

Multiple Choice

At 1,000 units of output, total cost is $42,000 and total variable cost is $34,000. At 1,000 units of output, what is the value of average total cost, average variable cost, and average fixed cost, respectively?

• A)$22; $14; $8
• B)$42; $34; $8
• C)$4.20; $3.40; $0.80
• D)$340; $740; $60
• E)$42; $34; There is not enough information provided to determine the average fixed cost.

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Definitions:

Unsold Merchandise

Items that remain in stock and are not sold within a certain period, potentially leading to inventory excess or losses.

Demanded Design

A design approach or product feature specifically requested or sought after by consumers or the market.

Consumer Surplus

The variance between the amount consumers are ready to spend on a good or service and the actual amount they pay.

Efficiency

The degree to which resources are used effectively and waste is minimized, often aiming at maximizing output from given inputs.