If a Firm Produces 20 Units of Output and Incurs

question 191

Multiple Choice

If a firm produces 20 units of output and incurs a total cost of $1,000 and a variable cost is $700, calculate the firm's average fixed cost of production if it expands output to 25 units.

• A)$300
• B)$15
• C)$12
• D)It is impossible to determine without additional information.

---

Definitions:

Axon

A long, slender projection of a neuron that transmits electrical impulses away from the neuron's cell body to other neurons or to muscles or glands.

Soma

The cell body of a neuron, containing the nucleus and cytoplasm.

Dendrite

Branched extensions of a neuron that act to conduct the electrochemical stimulation received from other neural cells to the cell body, or soma.

Dendrites

Branch-like extensions of neurons that receive signals from other neurons or sensory inputs.