At a Production Level of 5,600 Units a Project Has

question 1

Multiple Choice

At a production level of 5,600 units a project has total costs of $85,000.The variable cost per unit is $10.20.What is the amount of the total fixed costs?

• A)$24,126
• B)$25,480
• C)$26,200
• D)$27,880
• E)$28,626

---

Definitions:

Industry Price

A term generally referring to the average or standard price of goods and services within a specific industry.

Perfect Competitor

A hypothetical firm in a perfectly competitive market, where it must accept the prevailing market price and cannot influence it.

Average Total Cost

The cost per unit of output, calculated by dividing the total cost of production by the quantity of output.

Perfect Competition

A market structure characterized by a large number of small firms, a homogeneous product, free entry and exit, and perfect information.