Both Jill and John Own Toothpick Factories

question 51

Multiple Choice

Both Jill and John own toothpick factories.Jill's factory has low fixed costs and high variable costs.John's factory has high fixed costs and low variable costs.Currently each factory is producing 1,000 boxes of toothpicks at the same total cost.Complete the following statement with the correct answer.If each produces

• A)more,their costs will be equal.
• B)less,their costs will be equal.
• C)less,the costs of Jill's factory will exceed those of John's factory.
• D)more,the costs of Jill's factory will exceed those of John's factory.

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Definitions:

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