If Fixed Cost Is $200,000 and Variable Cost Is $30

question 97

Multiple Choice

If fixed cost is $200,000 and variable cost is $30 per unit over the relevant range of output, when 10,000 units are produced, the average total cost will be:

• A) $20.
• B) $30.
• C) $50.
• D) $70.

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Definitions:

Westerlies

Prevailing winds that blow from the west to the east in the temperate zones of the Earth.

Portuguese Colony

A territory overseen and controlled by Portugal during its period of colonial expansion, particularly from the 15th to the 20th centuries.

Colonial Economy

Refers to the economic system and practices implemented by colonial powers, often characterized by exploitation and exportation of raw materials from the colonized territories to benefit the colonial country.