Refer to Table 8

question 54

Multiple Choice

Refer to Table 8.1.Assume the wage rate is $10 and the firm has $1,000 in unavoidable fixed cost.What is the average fixed cost of producing 93 units of output?

• A) $11.40
• B) $10.75
• C) $0.65
• D) $10.00

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Definitions:

Money Supply

The total of all monetary assets within an economy at a specific instant, comprising cash, coins, and balances in checking and savings.

Long-Run Aggregate-Supply

is the total supply of goods and services that a country's economy can produce over time when all inputs are used to their full potential.

Aggregate Demand

It's the total demand for goods and services in an economy at a given overall price level and in a given time period.

Aggregate Supply

The total supply of goods and services that firms in an economy are willing and able to sell at a given price level in a given time period.