Figure 8-7 Figure 8-7 Shows the Cost Structure for a for a Firm

question 69

Multiple Choice

Figure 8-7
Figure 8-7 shows the cost structure for a firm.
-Refer to Figure 8-7.When the output level is 100 units average fixed cost is

• A) $12.
• B) $8.
• C) $4.
• D) This cannot be determined from the diagram.

---

Definitions:

Rate of Return

The gain or loss on an investment over a specified time period, expressed as a percentage of the investment's cost.

Invested

The act of allocating resources, typically money, into something with the expectation of generating income or profit, such as stocks, bonds, real estate, or a business venture.

Balance of Trade Surplus

A situation where the value of a country's exports exceeds the value of its imports over a given period, indicating a positive balance of trade.

Exports

Goods or services produced in one country and sold to buyers in another, contributing to the selling country's national income.