For the Following Question(s), Use the Accompanying Table

question 80

Multiple Choice

For the following question(s) , use the accompanying table.
Table 3-2

-Refer to Table 3-2.For Helen,the opportunity cost of 1 quilt is

• A)0.2 dresses.
• B)2 dresses.
• C)3.5 dresses.
• D)5 dresses.

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Definitions:

AVC

Average Variable Cost (AVC) is the total variable costs of production divided by the quantity of output produced, reflecting the cost per unit of varying the level of output.

ATC

Average Total Cost, which is the total cost of production divided by the number of goods produced.

Variable Costs

Costs that change in proportion to the level of activity or volume of production in a business.

Fixed Costs

Fixed costs refer to expenses that do not change with the level of production or sales, such as rent, salaries, and insurance premiums.