Figure 11-7 Figure 11-7 Shows the Cost Structure for a Firm

question 177

Multiple Choice

Figure 11-7

Figure 11-7 shows the cost structure for a firm.
-Refer to Figure 11-7.When the output level is 100 units average fixed cost is

• A)$10.
• B)$8.
• C)$5.
• D)This cannot be determined from the diagram.

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Definitions:

Risk of Loss

The potential that an investment or transaction may result in loss, attributed to various factors.

CIF

Cost, Insurance, and Freight, a trade term requiring the seller to arrange for the carriage of goods by sea to a port of destination, and provide the buyer with the documents necessary to obtain the goods from the carrier.

Shipping Term

Refers to agreed terms between a seller and buyer that outline the details about the delivery of goods, including who is responsible for shipping costs and risk of damage.

Negotiable Document

A written instrument, such as a bill of exchange, promissory note, or check, that guarantees payment of a specific amount of money and is transferable among different parties.