When 40,000 Units Are Produced,fixed Costs Are $16 Per Unit

question 125

Multiple Choice

When 40,000 units are produced,fixed costs are $16 per unit.Therefore,when 80,000 units are produced,fixed costs will:

• A)increase to $32 per unit.
• B)remain at $16 per unit.
• C)decrease to $8 per unit.
• D)total $640,000.
• E)total $540,000.

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Definitions:

United States

A country located in North America, comprising 50 states and a federal district, known for its large economy and diverse population.

Free Trade

An economic strategy permitting the free movement of goods in and out of countries without the imposition of tariffs, quotas, or any form of restrictions.

Virtues

Qualities or traits that are deemed to be morally good and thus is valued as a foundation of good moral being.

Infant-Industry Argument

A justification for protectionist policies that asserts new industries need to be shielded from international competition until they are mature and competitive enough.