A Firm's Average Fixed Cost When Producing 2,000 Units of Output

question 157

Multiple Choice

A firm's average fixed cost when producing 2,000 units of output equals $10.When only 1,000 units of output are produced:

• A) AFC must still equal $10.
• B) AFC must equal $20.
• C) AFC must equal $5.
• D) marginal cost must equal $20.

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Definitions:

Real GDP

The measure of a country's economic output adjusted for price changes and inflation, providing a more accurate reflection of an economy's size.

Per Capita GDP

The average economic output per person, calculated by dividing the country's Gross Domestic Product by its total population.

Population

The overall population within a designated region or nation.

GDP

The sum total of all goods and services created over a given period in a country, termed Gross Domestic Product, measures its economic achievements.