Refer to the Above Data

question 77

Multiple Choice

Refer to the above data.The average fixed cost of producing 3 units of output is:

• A) $8.
• B) $7.40.
• C) $5.50.
• D) $6. Total fixed costs are $24 (i.e. ,costs where output level is zero).Average fixed costs at 3 units of output is $24/3 = $8.

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Definitions:

Coupon Rate

The annual interest yield on a bond, displayed as a percentage of its principal value.

Tax Rate

The scale at which the government levies taxes on the financial gains of individuals or corporations.

Face Value

The nominal value printed on a bond or other financial instrument; it is the amount paid to the holder at maturity, though the market value can differ.