The Following Table Shows the Cost of Producing Different Units

question 98

Multiple Choice

The following table shows the cost of producing different units of ball point pens by a firm. Table 7.1

-Refer to Table 7.1.What will be the average fixed cost of producing five ball point pens?

• A)$2
• B)$5
• C)$4
• D)$3.33
• E)$10

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Definitions:

Saving

The portion of income that is not spent on immediate consumption but is set aside for future use, often in investments or deposits.

Disposable Income

The available amount for households to spend and save, subsequent to income tax deductions.

Autonomous Consumption

The level of consumption that occurs when income is zero, representing the expenditures that consumers must make even when they have no income.

Disposable Income

Refers to the funds that individuals can spend or save after all income taxes are deducted.