The Wacky Widget Company Has Total Fixed Costs of $100,000

question 339

Multiple Choice

The Wacky Widget company has total fixed costs of $100,000 per year. The firm's average variable cost is $5 for 10,000 widgets. At that level of output, the firm's average total costs equal

• A)$10
• B)$15
• C)$100
• D)$150

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Definitions:

Main Crops

Primary agricultural products that are extensively cultivated in a region.

High Inflation

A period of rapidly increasing prices, decreasing the purchasing power of money.

Industrial Capitalists

Individuals or entities investing in industries for production, with the aim of generating profit through ownership of capital goods.

Labor Unions

Organizations formed by workers from related fields to protect their common interests and improve their working conditions through collective bargaining.