Exhibit 6-9 Cost Schedule for Firm X As Shown in Exhibit 6-9, the Average Total Cost of c

question 14

Multiple Choice

Exhibit 6-9 Cost schedule for firm X $$\begin{array} { | c | c | c | } \hline \begin{array} { c } \text { Output } \\\text { Quantity }\end{array} & \begin{array} { c } \text { Total Fixed } \\\text { Cost }\end{array} & \begin{array} { c } \text { Total Variable } \\\text { Cost }\end{array} \\\hline 0 & \$ 100 & \$ 0 \\1 & 100 & 50 \\2 & 100 & 84 \\3 & 100 & 108 \\4 & 100 & 127 \\5 & 100 & 150 \\\hline\end{array}$$ As shown in Exhibit 6-9, the average total cost of producing 5 units is:

• A) $20.
• B) $30.
• C) $50.
• D) $250.

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Definitions:

Below-Average Earnings

refer to income levels that are lower than the average earnings within a specified population or employment sector.

Social Security System

A government program that provides financial assistance to people with inadequate or no income, especially the elderly and disabled.

Highest-Valued Alternative

The best next option forgone as a result of making a particular decision, often related to the concept of opportunity cost.

Production Possibilities Curve

A curve that outlines all possible combinations of total output that could be produced, assuming (1) a fixed amount of productive resources, (2) a given amount of technical knowledge, and (3) full and efficient use of those resources. The slope of the curve indicates the amount of one product that must be given up to produce more of the other.