The Following Figure Represents the Short-Run Total Cost Function for the Fidget

question 27

Multiple Choice

The following figure represents the short-run total cost function for the Fidget Company,which produces widgets.When output is 25,average fixed cost is:

• A) $4.
• B) $25.
• C) $625.
• D) $3,125.
• E) none of the above.

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Definitions:

Expiration

In finance, expiration refers to the date on which a derivative contract (such as options or futures) ceases to exist and settles between the contracting parties.

Arbitrage Opportunity

The chance to buy an asset at a low price in one market and simultaneously sell it at a higher price in another, realizing a profit with no risk.

American Call Option

An American call option is a financial contract that gives the holder the right, but not the obligation, to buy an asset at a specified price before the option expires.

Exercise Price

The specified price at which the option holder can buy or sell the underlying asset in options trading.