If Fixed Costs Are $1,000 and Variable Costs Are Constant

question 83

Multiple Choice

If fixed costs are $1,000 and variable costs are constant at $1.00 per unit over the relevant range of output,what will the average total cost be when 2,000 units are produced?

• A)$0.50
• B)$1.00
• C)$1.50
• D)$2.00

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Definitions:

Personality Disorder

A type of mental disorder characterized by enduring maladaptive patterns of behavior, cognition, and inner experience.

Hypochondriasis

A psychological disorder characterized by excessive worrying over having a serious illness, despite medical reassurance.

Normal Physical Sensations

Ordinary or typical bodily feelings that arise from everyday activities, conditions, or responses to the external environment.

Dreaded Disease

A term referring to a particularly feared illness or condition, often because of its severity, painfulness, or the lack of a cure.