A Firm's Fixed but Avoidable Costs Are $100,000 and Its

question 60

Multiple Choice

A firm's fixed but avoidable costs are $100,000 and its variable costs are $250 per unit.It produces 50,000 units and prices it at $400 per unit.In the long-run,how low can price go before the firm decides to shut down?

• A)​$150
• B)$252
• C)$250.20
• D)​$400

---

Definitions:

Bronze Metallurgy

The practice and knowledge involved in producing bronze, an alloy of copper and tin, used in tools, weapons, and sculptures in ancient times.

Warfare

The engagement in or activities associated with armed conflict between countries or groups.

Farming

The practice of cultivating plants and livestock to produce food, fiber, medicinal plants, and other products to sustain and enhance life.

Specialized Laborers

Workers skilled in specific fields or tasks, contributing to the efficiency and development of industries and economies through their expertise.