Table 13-3 Consider the Following Firm Which Makes High-Performance Racing Bicycles.All Costs

question 81

Multiple Choice

Table 13-3
Consider the following firm which makes high-performance racing bicycles.All costs are given in dollars.Output is shown on a monthly basis.The firm's fixed costs include a rent of $800 and a lease cost of $400 per month.
-Refer to Table 13-3.What is the average variable cost for the month if six bicycles are produced?

• A)$200
• B)$265
• C)$465
• D)$1590

---

Definitions:

Output

The quantity of goods or services produced in a given time period.

Cartels

Formal agreements among competing firms in the same industry aimed at controlling production, fixing prices, and restricting competition.

Production

The procedure involved in producing goods and services.

Federal Budget Deficit

The federal budget deficit occurs when the government's expenditures exceed its revenues in a given fiscal year, leading to borrowing or use of reserves.