The Variances of IS and DS Are

question 51

Multiple Choice

The variances of IS and DS are:

• A) .0145; .00038.
• B) .011584; .000304.
• C) .006454; .000154.
• D) .0008068; .000193.

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Definitions:

Average Variable Costs

The total variable costs divided by the number of units produced, indicating the average cost of producing each unit excluding fixed costs.

Short-Run Losses

Financial deficits that a firm experiences in the period where at least one factor of production is fixed, leading to an inability to cover total costs.

Operate

The act of functioning or running a business or machine, carrying out actions necessary for performance.

Average Variable Cost

the total variable cost divided by the quantity of output produced; it shows the variable cost per unit of output.