If a Firm Produces 20 Units of Output and Incurs

question 47

Multiple Choice

If a firm produces 20 units of output and incurs a total cost of $1000, and the variable cost is $700, what is the firm's average fixed cost of production if it expands output to 25 units?

• A)$300
• B)$15
• C)$12
• D)It is impossible to determine without additional information.

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Definitions:

Real Property

Land and anything permanently attached to it, such as buildings and natural resources.

Fully Executed Contract

A legally binding agreement that has been fully enacted, with all its terms met by all parties involved.

Labelling Theory

The assertion that once labelled as deviant, people come to accept the label as part of their identity.

Deviant

Behavior that violates the norms, values, or expectations of a group or society, which can provoke negative or positive reactions from others.