A Firm's Average Total Cost Is $80, Its Fixed Cost

question 155

Multiple Choice

A firm's average total cost is $80, its fixed cost is $1000, and its output is 100 units. Its average variable cost

• A) is less than $40.
• B) is between $40 and $60.
• C) is more than $60.
• D) cannot be determined without more information.

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Definitions:

Intrafunctional Scope

Refers to activities and operations within a single function or department of an organization, focusing on its internal capabilities and efficiency.

Outsourcing

The practice of hiring external firms to handle work normally performed within a company, often to cut costs or focus on core business competencies.

Uncertainty

The lack of certainty or predictability about the outcome of an event, often requiring risk management strategies.

Competitive Strategy

A planned method of positioning a company in the market and gaining an edge over competitors, often by analyzing strengths, weaknesses, opportunities, and threats.