Consider the Following Cost Data -The Average Fixed Cost of Producing 3 Units of Output

question 25

Multiple Choice

Consider the following cost data:

$\begin{array} { | l | c | c | c | c | c | c | c | } \hline \text { Output } & 0 & 1 & 2 & 3 & 4 & 5 & 6 \\\hline \text { Total Cost (\$) } & 24 & 33 & 41 & 48 & 54 & 61 & 69 \\\hline\end{array}$
-The average fixed cost of producing 3 units of output is:

• A)$8
• B)$7.40
• C)$5.50
• D)$6
• E)$16

---

Definitions:

Market Value

The current price at which an asset or service can be bought or sold in the market.

Total Assets

Represents the sum of all funds, properties, and assets owned by a company or individual at a given time.

Defensive Mergers

Mergers undertaken by companies to protect against potential threats, improve market position, or mitigate weaknesses.

Shareholders' Wealth

Refers to the overall value of the shares an investor holds in a company, which increases as the company's value goes up.