If Total Fixed Costs Are $1,000,variable Costs Are Constant at $5.00

question 42

Multiple Choice

If total fixed costs are $1,000,variable costs are constant at $5.00 per unit over the relevant range of output and the average total cost is $6,how many units are being produced?

• A)10
• B)100
• C)1,000
• D)1,100

---

Definitions:

Marginal Product

The extra production obtained when one additional unit of a specific input is used, while all other inputs stay unchanged.

Labor Supply Curve

A graphical representation showing the relationship between the quantity of labor supplied and the wage rate in a given market.

Equilibrium

A state in a market where supply equals demand, with no external forces causing disruption, hence prices tend to stabilize.

Labor Supply

The cumulative hours that workforce members are eager and able to dedicate to work, provided a set wage.