Scenario 13-6 A Certain Firm Produces and Sells Staplers.Last Year,it Produced 7,000

question 320

Multiple Choice

Scenario 13-6
A certain firm produces and sells staplers.Last year,it produced 7,000 staplers and sold each stapler for $6.In producing the 7,000 staplers,it incurred variable costs of $28,000 and a total cost of $45,000.
-Refer to Scenario 13-6.In producing the 7,000 staplers,the firm's average variable cost was

• A) $2.43.
• B) $4.00.
• C) $6.00.
• D) $6.43.

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Definitions:

Zero Slope

A horizontal line on a graph, indicating that there is no change in the y-value (vertical) regardless of the change in the x-value (horizontal); it represents a constant function.

Positive Slope

Indicates an upward trend on a graph, demonstrating that as one variable increases, the other variable also increases, especially used in the context of supply and demand curves in economics.

Consumption

The use of goods and services by households or individuals for personal needs or wants.

Income

Earnings received by an individual or entity, typically in the form of wages, salaries, or various types of investments.