​If a Firm Produces 8 Units of Output with Average

question 59

Multiple Choice

​If a firm produces 8 units of output with average fixed cost=$40 and average variable cost=$25,what is its total cost?

• A)​$320
• B)$200
• C)$520
• D)​$1,000

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Definitions:

Par Value

The face value of a bond or stock as stated by the issuer, which may differ from its market value.

Cash Dividend

A payment made by a company out of its earnings to its shareholders, usually in the form of cash.

Stock Dividend

A dividend payment made in the form of additional shares rather than a cash payout.

Legal Obligation

A duty enforced by law that requires an individual or entity to conform to specific conduct or refrain from certain actions.