The Sales Price of a Particular Unit Is $19

question 18

Multiple Choice

The sales price of a particular unit is $19.00.The company plans to sell 7,500 units.The variable costs are $6.00 per unit and monthly fixed costs are $112,500.Given this information what is the average fixed cost per unit?

• A)$6.00 per unit
• B)$21.00 per unit
• C)$13.00 per unit
• D)$15.00 per unit

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Definitions:

Market Demand

The total quantity of a good or service that all consumers in a market are willing and able to purchase at various prices.

Market Supply

The total quantity of a good or service available for purchase at any given price level in a given market.

Price Floor

A government or regulatory-imposed minimum price set above the equilibrium price, preventing the market price from falling below it.

Total Welfare

The total economic well-being that a society achieves, including both consumer surplus and producer surplus.