If Fixed Cost Is $5,000,and,at an Output of 3 Variable

question 134

Multiple Choice

If fixed cost is $5,000,and,at an output of 3 variable cost is $4,000,how much is average total cost at an output of 3?

• A)$1,333.33
• B)$3,000
• C)$4,500
• D)$9,000
• E)There is not enough information to determine ATC at an output of 3.

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Definitions:

Farm Products

Commodities produced through agricultural activities, such as crops, livestock, and their by-products.

Fidelity Bond

A form of insurance protection that covers policyholders for losses that they incur as a result of fraudulent acts by specified individuals, typically employees.

Corporate Funds

Money or financial resources that belong to a corporation and are used for its business operations and activities.

Dishonesty

Conduct that shows a lack of integrity or honesty in actions, often leading to deception or fraud.