Bill's Mechanical Devices Inc

question 4

Multiple Choice

Bill's Mechanical Devices Inc.produces robots for the automotive industry.If its average variable costs are given by AVC = 25,its fixed costs are $2,500,and it charges $75 a robot,what is Bill's break-even level of output?

• A) 25 robots.
• B) 33.3 robots.
• C) 50 robots.
• D) 75 robots.
• E) 100 robots.

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Definitions:

Series

A circuit configuration where components are connected in a linear sequence so that the same current flows through each component.

Two-Branch

Refers to a circuit configuration that splits into two distinct paths or branches, often used in parallel circuit analysis.

Parallel Circuit

A circuit in which components are connected across common points or junctions, providing multiple paths for current flow.

Total Resistance

The combined resistance of all components in a series or parallel electrical circuit that affects the flow of electrical current.