A Firm Produces 400 Units of Output at a Total

question 248

Multiple Choice

A firm produces 400 units of output at a total cost of $1,200. If total variable costs are $1,000,

• A)average fixed cost is 50 cents.
• B)average variable cost is $2.
• C)average total cost is $2.50.
• D)average total cost is 50 cents.

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Definitions:

Adrenal Glands

Small glands located on top of each kidney that produce hormones, including adrenaline and cortisol, involved in stress response.

Formal Operational

A stage of cognitive development proposed by Piaget, during which individuals learn to think abstractly and reason about hypothetical problems.

Postconventional

A stage in moral development where individuals base their moral decisions on internal principles and the concept of justice, beyond societal norms.

Concrete Operational

A stage in Piaget’s theory of cognitive development (age 7-11) where children gain the ability to think logically about concrete events.