-Refer to the Above Table

question 60

Multiple Choice

-Refer to the above table. What is AVC at an output of 2 units?

• A) $7
• B) $16
• C) $45
• D) $61

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Definitions:

Net Fixed Assets

The total value of a company's physical assets (like machinery, buildings, equipment) minus depreciation, indicating the net book value of physical assets.

Net Income

A business's residual profit after all operational costs and tax charges are extracted from its total revenues.

Common-Size Statement

A financial statement in which all items are expressed as a percentage of a common base figure, facilitating comparison across different periods or companies.

Net Fixed Assets

The value of a company’s long-term, tangible assets minus any depreciation, representing the net book value of physical assets.