Total Fixed Cost Divided by the Level of Output Yields

question 50

Multiple Choice

Total fixed cost divided by the level of output yields the _____

• A)average variable cost per unit.
• B)average fixed cost per unit.
• C)marginal cost per unit.
• D)average total cost per unit.
• E)marginal productivity per unit of fixed resource.

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Definitions:

Consumption

The use of goods and services by households or individuals, often considered in terms of the total amount consumed in an economy.

Allocation of Resources

The process of distributing available resources among various uses to satisfy the needs and wants of the society.

Taxes

Financial charges imposed by a government on individuals, businesses, or other entities to fund public spending and various services.

Prices

The monetary value assigned to goods and services in a market, determining the exchange rate in transactions.