-The Table Above Gives Production Information for Bob's Baseball Cap

question 383

Multiple Choice

-The table above gives production information for Bob's Baseball Cap Company. Bob's total cost when zero caps are produced is $200 and workers cost $10 per hour. The average variable cost of producing 10 baseball hats per hour is

• A) $1.
• B) $2.
• C) $20.
• D) More information is needed to answer the question.

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Definitions:

Limited Liability

A legal structure that limits the financial liability of company owners to the amount they have invested in the company.

Debt Instrument

A paper or electronic obligation that enables the issuing party to raise funds by promising to repay a lender in accordance with terms of a contract.

Bond

A fixed income investment in which an investor loans money to an entity (corporate or governmental) which borrows the funds for a defined period at a variable or fixed interest rate.

Financial Asset

An intangible asset that derives value from a contractual right or ownership claim, such as stocks, bonds, or bank deposits.