If the Total Cost of Producing 6 Units Is $48

question 2

Multiple Choice

If the total cost of producing 6 units is $48 and the marginal cost of the seventh unit is $15, then:

• A)the average total cost of 7 units is $9.
• B)the average variable cost of 7 units is $9.
• C)fixed costs are $8.
• D)fixed costs are $33.
• E)none of the above are true.

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Definitions:

Six Sigma

A method that provides organizations tools to improve the capability of their business processes by increasing performance and decreasing process variation.

Communications Space

Refers to the platforms and channels used for exchanging information and messages between individuals or organizations.

Defect

A flaw or imperfection in a product or system that hinders its intended functionality or quality.

Guaranteed Period

A timeframe during which certain conditions of a contract, such as warranty or returns, are assured to be honored.