With Fixed Costs of $400, a Firm Has Average Total

question 423

Multiple Choice

With fixed costs of $400, a firm has average total costs of $3 and average variable costs of $2.50. Its output quantity must be

• A)200 units.
• B)400 units.
• C)800 units.
• D)1,600 units.

---

Definitions:

Oil Quality

A measure of the physical and chemical properties of oil, indicating its suitability for various uses or its compliance with standards.

Price Per Barrel

The cost of a barrel of commodities like oil, typically used as a benchmark for pricing.

Estimating Mean Value

The process of calculating the average value of a set of numbers or measurements.

Predicting Individual Value

The process of estimating the monetary or intrinsic value of a specific entity or individual based on relevant parameters.