Assume That You Know the Following Cost Information About Fred's

question 112

Multiple Choice

Assume that you know the following cost information about Fred's widget company: Its fixed cost is $9,and its total variable cost is $6 for 1 unit; $11 for 2; $ 15 for 3; 20 for 4; and 26 for 5.Given the above information,

• A) the marginal cost of the third unit is greater than the marginal cost of the first unit.
• B) the marginal cost of the fourth unit is the same as the marginal cost of the second unit.
• C) the average variable cost of four units is the same as for three units.
• D) both (b) and (c) are correct.

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Definitions:

Goodwill

The positive reputation and brand value that a business acquires beyond its tangible assets, often affecting customer loyalty and market value.

Courtesy

The display of politeness, respect, and consideration for others in behavior and communication.

Conversational Language

A style of language that is informal and similar to everyday spoken communication.

You-viewpoint

A communication technique that focuses on the listener or reader's perspective, needs, and interests, often used to create more engaging and persuasive messages.