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.

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