In a Factory, the Fixed Costs Are $6,000 When 600

question 79

Multiple Choice

In a factory, the fixed costs are $6,000 when 600 units are produced. If 900 units are produced, the fixed costs per unit would be

• A) $10.00.
• B) $9.00.
• C) $7.50.
• D) $6.67. 6,000/900.

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Definitions:

Income Elasticity

A measure of how much the demand for a good or service changes in response to changes in the consumer's income.

Inverse Demand Function

A function that represents the price of a good as a function of the quantity demanded.

Soybeans

A species of legume known for its edible bean, which has numerous uses including oil, meal, and livestock feed.

Total Revenue

The income that a company receives from selling its goods or services before any costs or expenses are subtracted.