If a Firm Produces 20 Units of Output and Incurs

question 191

Multiple Choice

If a firm produces 20 units of output and incurs a total cost of $1,000 and a variable cost is $700, calculate the firm's average fixed cost of production if it expands output to 25 units.

• A)$300
• B)$15
• C)$12
• D)It is impossible to determine without additional information.

---

Definitions:

Sexual Harassment

Unwanted and inappropriate sexual remarks or physical advances in a workplace or other professional or social situations.

Employee Performance

The assessment of the effectiveness and productivity of an employee in carrying out their job duties.

Zero-based Budgeting

A budgeting approach that starts from a "zero base" every new period, analyzing and justifying every expense before it is approved.

Budget Period

A specific timeframe for which financial planning, expenditure, and revenue projections are made and managed within an organization.