(Figure: Cost Schedule) in the Figure, the Average Fixed Cost

question 11

Multiple Choice

(Figure: Cost Schedule) In the figure, the average fixed cost to produce two units is:
$\begin{array}{|c|c|c|c|}\hline \text { Quantity } & \text { Fixed Cost } & \begin{array}{c}\text { Variable } \\\text { Cost }\end{array} & \begin{array}{c}\text { Marginal } \\\text { Cost }\end{array} \\\hline 0 & \$ 11 & \$ 0 & - \\\hline 1 & 11 & 3 & \$ 3 \\\hline 2 & 11 & 8 & 5 \\\hline 3 & 11 & 14 & 6 \\\hline 4 & 11 & 23 & 9 \\\hline 5 & 11 & 36 & 13 \\\hline\end{array}$

• A) $11.
• B) $9.50.
• C) $3.67.
• D) $5.50

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Definitions:

Type I Error

An error where a valid null hypothesis is wrongly discredited, also known as a "false positive."

Type II Error

A statistical error that occurs when a test fails to reject a false null hypothesis.

Unfair Labor Practices

Actions taken by employers or unions that violate the rights of employees or regulations governing labor relations.

National Labor Relations Act

A foundational US law enacted in 1935 to protect the rights of employees and employers, encouraging collective bargaining and regulating union activities.