If Fixed Costs Are $10,000 and Variable Costs Are Constant

question 25

Multiple Choice

If fixed costs are $10,000 and variable costs are constant at $1.00 per unit over the relevant range of output,what will the average total cost be when 10,000 units are produced?

• A)$0.20
• B)$2.00
• C)$5.00
• D)$1.00

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Definitions:

Party

A social gathering of invited guests, typically involving eating, drinking, entertainment, and sometimes specific celebrations.

Proletariat

The class of workers in capitalist societies who do not own the means of production and whose main source of income is the sale of their labor power.

Class

A category or grouping of people in society often defined by economic, social, or professional status.

Ethnomethodology

A sociological perspective that examines the methods people use to understand and produce the social order in everyday situations.