Answer the Question on the Basis of the Following Cost

question 146

Multiple Choice

Answer the question on the basis of the following cost data. $\begin{array} { | c | c | c | } \hline \text { Output } & \text { Average Fixed Cost } & \text { Average Variable Cost } \\\hline 1 & \$ 50.00 & \$ 100.00 \\\hline 2 & 25.00 & 80.00 \\\hline 3 & 16.67 & 66.67 \\\hline 4 & 12.50 & 65.00 \\\hline 5 & 10.00 & 68.00 \\\hline 6 & 8.37 & 73.33 \\\hline 7 & 7.14 & 80.00 \\\hline 8 & 6.25 & 87.50 \\\hline\end{array}$ The total cost of four units of output is

• A) $260.
• B) $77.50.
• C) $310.
• D) $215.

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Definitions:

Annually Balanced Budget

A financial statement showing that projected government revenues equal expected expenditures on an annual basis.

Destabilize

To cause a system, situation, or environment to become unstable or out of balance.

Economy

The large set of interrelated production, consumption, and exchange activities that aid in determining how scarce resources are allocated.

Full-Employment

Full-employment refers to the level of employment rates where there is no cyclical or deficient-demand unemployment, essentially meaning that everyone who wants to work and is able to work can find employment at the current wage rates.