If Total Fixed Costs Are $1,000,variable Costs Are Constant at $5.00

question 31

Multiple Choice

If total fixed costs are $1,000,variable costs are constant at $5.00 per unit over the relevant range of output and average total cost is $6,what is average fixed cost?

• A)$1
• B)$5
• C)$10
• D)$1,000

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Definitions:

Horizontal

Relating to or involving entities at the same level of a hierarchy or process, often used to describe market competition between companies with similar products.

Slope

Slope indicates the steepness or incline of a line, defined as the ratio of the vertical change to the horizontal change between two points on the line.

Curved Line

a line that continuously moves away from a straight direction but does not change in its degree of curvature.

Inclusive Language

The deliberate selection and use of vocabulary that avoids the exclusion of particular groups and that avoids the use of false generic terms (Canadian Race Relations Foundation, 2017).