The Table Given Below Shows the Total Fixed and Variable

question 38

Multiple Choice

The table given below shows the total fixed and variable costs of a firm.Table 8.3

-Refer to Table 8.3. At what level of output does the average total cost starts increasing?

• A)1 unit
• B)6 units
• C)5 units
• D)7 units
• E)4 units

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Definitions:

Output

The total amount of goods or services that are produced by a company or an economy.

Price Discounts

Reductions from the regular selling price of goods or services, often used as a strategy to increase demand or reward customers.

Competitive Market

A market structure characterized by a large number of buyers and sellers, free entry and exit, and a homogenous product, leading to price determination through supply and demand forces.

Production Function

A mathematical model in economics that describes the relationship between input resources and the output of goods or services a firm can produce.