You Have Decided to Buy a Yacht, Specifically, a Nautor's

question 7

Multiple Choice

You have decided to buy a yacht, specifically, a Nautor's Swan 68 sailing yacht. This lovely boat cost $384,300 in 1976, when the CPI was 57. The CPI at the beginning of 2000 was about 168, and the yacht then cost $2,300,000. What is the 1976 yacht price expressed in 2000 dollars?

• A) $130,388
• B) $780,357
• C) $1,132,674
• D) $6,778,947

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Definitions:

Average Total Cost

Total cost divided by the number of units produced, representing the cost per unit of output.

Average Total Costs

The sum of all the production costs divided by the quantity of output produced, representing the per-unit cost of production.

Average Variable Costs

Costs that vary with the level of output, divided by the quantity of output produced, indicating the variable cost per unit.

Total Fixed Costs

The sum of all costs that remain constant regardless of the level of production or sales in a company.