Use the Table Below to Answer the Following Question What Is the Average Total Cost at an Output Level

question 102

Multiple Choice

Use the table below to answer the following question. $$\begin{array} { | c | c | c | } \hline \begin{array} { c } \text { Units of } \\\text { Output }\end{array} & \begin{array} { c } \text { Total Fixed } \\\text { Cost (dollars) }\end{array} & \begin{array} { c } \text { Total Variable } \\\text { Cost (dollars) }\end{array} \\\hline 1 & 1,000 & 1,200 \\2 & 1,000 & 2,400 \\3 & 1,000 & 3,600 \\4 & 1,000 & 5,000 \\5 & 1,000 & 6,600 \\\hline\end{array}$$ What is the average total cost at an output level of four units?

• A) $1,200.
• B) $1,400.
• C) $1,500.
• D) $2,000.

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Definitions:

Management Styles

The various approaches and methods employed by leaders in guiding, directing, and motivating employees to achieve organizational objectives.

Knowledge Management

The efficient handling, organizing, and sharing of information and knowledge within an organization.

Classical Management

A theory of management focused on the efficiency of the work process through division of labor, hierarchy, and strict control mechanisms.

Total Quality Management

A management approach focused on improving the quality of all organizational processes through ongoing refinements in response to continuous feedback.