A Firm Has Average Fixed Costs of $0

question 297

Multiple Choice

A firm has average fixed costs of $0.20 and average variable costs of $2.50 at an output of 500 units. The firm's total costs are therefore

• A) $1,250.
• B) $1,350.
• C) $1,150.
• D) $1,500.

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Definitions:

Personal Risk

refers to the uncertainties facing individuals that may threaten their health, safety, or financial security.

Indefinitely

An undefined period of time, with no set end date or limitation.

Assets

Economic resources held by an enterprise, capable of delivering future gains.

Accounts Receivable

Money owed to a business by its customers for goods or services delivered or used but not yet paid for.