When Super Stuff Corporation Produces 5,000 Units, Total Costs Equal

question 62

Multiple Choice

When Super Stuff Corporation produces 5,000 units, total costs equal $150,000 and total variable costs equal $75,000. At this level of output, what is Super Stuff's average fixed cost?

• A) $75,000
• B) $30
• C) $225,000
• D) $15

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Definitions:

Tax Rate

The percentage at which an individual or corporation is taxed by the government on income or profits.

M x V = P x Y

The equation representing the quantity theory of money, where M is the money supply, V is the velocity of money, P is the price level, and Y is the real output.

Price Level

The average of current prices across the entire spectrum of goods and services produced in the economy, indicative of inflation or deflation.

Real Value

The value of an item or currency adjusted for inflation, showing its true purchasing power over time.