The Following Table Shows the Cost of Producing Different Units

question 93

Multiple Choice

The following table shows the cost of producing different units of ball point pens by a firm. Table 7.1
According to Table 7.1, the total fixed cost of the firm equals:

• A)$18.
• B)$10.
• C)$2.
• D)$12.
• E)$8.

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Definitions:

Factor of Production

An input used in the production of goods or services, including labor, capital, land, and entrepreneurship.

Absolute Advantage

The capacity of a person, business, or nation to manufacture a product or provide a service more effectively than its rivals utilizing the same quantity of resources.

Gains From Trade

Gains from trade are the benefits obtained by countries or individuals from engaging in international trade, allowing them to consume or produce beyond their domestic capabilities.

Factor Market

A marketplace where factors of production (land, labor, capital, entrepreneurship) are bought and sold, affecting the prices and allocation of these resources.