Which of the Following Is an Example of a Capital

question 116

Multiple Choice

Which of the following is an example of a capital good?

• A)A new car sold to a family
• B)A metal-stamping machine used to produce cars sold to an automaker
• C)A new speaker system sold to an automaker for installation in a car
• D)A new mobile phone sold to a teenager

Understand the role of technology in achieving competitive advantage and the types of technology used in different production processes.

Comprehend the impact of supply chain management on operational efficiency and how it contributes to competitive advantage.

Appreciate the continuous improvement processes in organizations and how they support operational excellence.

Analyze the role of technology in modern manufacturing and service delivery.

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Definitions:

Average Variable Cost

The total variable cost divided by the number of units produced, representing the variable cost per unit of output.

Average Fixed Cost

The fixed costs (costs that do not change with the level of output) of producing a good or service, divided by the quantity of output produced.

Total Cost

The entire cost of production, including both fixed and variable costs.

Average Total Cost

Average total cost is the total cost of production (fixed plus variable costs) divided by the total quantity produced, indicative of the cost per unit at different levels of output.