The Wacky Widget Company Has Total Fixed Costs of $100,000

question 339

Multiple Choice

The Wacky Widget company has total fixed costs of $100,000 per year. The firm's average variable cost is $5 for 10,000 widgets. At that level of output, the firm's average total costs equal

• A)$10
• B)$15
• C)$100
• D)$150

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Definitions:

Villa of Livia

An ancient Roman villa said to belong to Livia Drusilla, wife of Emperor Augustus, known for its well-preserved frescoes depicting garden landscapes.

House of the Vetii

An ancient Roman house located in Pompeii, famous for its opulent decorations and the insight it provides into domestic life before the eruption of Mt. Vesuvius in 79 AD.

Menander

An Ancient Greek playwright of the New Comedy period, renowned for his character-driven plots and influence on Roman comedy.

Alcibiades

A charismatic and controversial Athenian statesman and general, known for his shifting political allegiances during the Peloponnesian War and for his impact on Athens' military and political strategies.