Suppose a Firm Is Producing 100 Units of Output,incurring a Total

question 41

Multiple Choice

Suppose a firm is producing 100 units of output,incurring a total cost of $10 000 and total variable cost of $6000.It can be concluded that average fixed cost is

• A)$40.
• B)$60.
• C)$100.
• D)$160.
• E)$4000.

Understand the concept of opportunity cost and how it varies between countries.

Recognize the benefits of trade between countries based on the principle of comparative advantage.

Analyze the concept of absolute advantage in the production of goods.

Interpret production possibility frontiers and their implications for trade and specialization.

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Definitions:

Validity

The degree to which a test or instrument measures what it is supposed to measure.

Validity

The degree to which an idea, conclusion, or measurement is grounded in reality and accurately reflects the actual world.

Repeated Studies

Research projects or experiments conducted more than once to verify findings and ensure reliability and validity of results.

Time Consuming

Activities or processes that require a considerable amount of time to complete.