Scenario 12-16 A Certain Firm Produces and Sells Staplers.Last Year,it Produced 7,000

question 450

Multiple Choice

Scenario 12-16
A certain firm produces and sells staplers.Last year,it produced 7,000 staplers and sold each stapler for $6.In producing the 7,000 staplers,it incurred variable costs of $28,000 and a total cost of $45,000.
-Refer to Scenario 12-16.In producing the 7,000 staplers,the firm's average fixed cost was

• A) $1.00.
• B) $1.32.
• C) $2.21.
• D) $2.43.

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Definitions:

Dynamic Pricing Policy

A pricing strategy where the prices of goods or services are adjusted in real-time based on demand, competition, and other market factors.

Competitive Factors

Elements that influence a company's ability to compete in the market, including product quality, price, marketing strategies, and customer service.

Demand Changes

Alterations in consumer desire or need for products and services, influenced by factors like price, trends, and economic conditions.

Price War

A competitive strategy involving retailers or companies reducing their product prices to gain more customers and market share from competitors.