Assume the Following Cost Information About Fred's Widget Company: Its

question 18

Multiple Choice

Assume the following cost information about Fred's widget company: Its fixed cost is $27,and its total variable cost is $18 for 1 unit; $33 for 2; $45 for 3; $60 for 4; and $78 for 5.Given this information:

• A) average fixed cost rises from an output of four to an output of five.
• B) average fixed cost is greater than marginal cost for the second unit produced.
• C) the output level which minimizes average total cost is four units.
• D) average variable cost rises, but average total cost falls, as output increases from four to five.

---

Definitions:

Schizophrenic Disorder

A long-term mental disorder involving a breakdown in the relation between thought, emotion, and behavior, leading to faulty perception, inappropriate actions and feelings, withdrawal from reality and personal relationships into fantasy and delusion, and a sense of mental fragmentation.

Antisocial Personality Disorder

A mental condition where a person consistently shows no regard for right and wrong and ignores the rights and feelings of others.

Unfit to Stand Trial

A legal determination that a person is not mentally capable of participating in their defense due to mental illness or incapacity.

Echolalia

The automatic and involuntary repetition of words or phrases spoken by others, often observed in autism and certain neurological conditions.