Answer the Question on the Basis of the Following Cost

question 47

Multiple Choice

Answer the question on the basis of the following cost data: $\begin{array}{c}\begin{array}{c}\\\\\underline{\text {Output}}\\1 \\2 \\3 \\4 \\5 \\6 \\7 \\8\end{array}\begin{array}{c}\text {Average}\\\text {Fixed}\\\underline{\text {Cost }}\\\$ 50.00 \\25.00 \\16.67 \\12.50 \\10.00 \\8.37 \\7.14 \\6.25\end{array}\begin{array}{c}\text {Average}\\\text {Variable}\\\underline{\text {Cost }}\\ \$ 100.00 \\80.00 \\66.67 \\65.00 \\68.00 \\73.33 \\80.00 \\87.50\end{array}\end{array}$
Refer to the data.Total fixed cost is:

• A) $6.25.
• B) $100.00.
• C) $150.00.
• D) $50.00.

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Definitions:

Weak Property Rights

A situation where property rights are not fully enforced or clearly defined, leading to uncertainty and potential inefficiency in economic transactions.

Extraction

The process of removing or obtaining a resource from its source or original location, typically used in the context of natural resources.

Long-Term Stream

Long-Term Stream refers to a continuous process or sequence of events that unfolds over an extended period, often in the context of planning or investment.

Nonrenewable Natural Resources

Natural resources such as fossil fuels and minerals that do not replenish on a human time scale and hence are finite.