If a Firm's Total Fixed Cost Is $400,000 and Its

question 24

Multiple Choice

If a firm's total fixed cost is $400,000 and its fixed cost contribution per unit is $10, its break-even in units is:

• A) 30,000.
• B) 40,000
• C) 10,000.
• D) 20,000.
• E) Cannot be determined with this information.

---

Definitions:

Monetary Policy

Actions taken by a central bank to control the money supply and interest rates in order to influence economic conditions, such as inflation and employment.

Ben Bernanke

A prominent American economist who served as the Chairman of the Federal Reserve from 2006 to 2014, known for his policies during the financial crisis of 2008.

Banging The Gong

A ceremonial act of ringing a gong, often used to signify the opening or closing of trading on a stock exchange.

Discount Rate

The charge applied by the Federal Reserve on loans provided to commercial banks and various financial establishments via its discount window.