The Following Table Shows the Cost of Producing Different Units

question 2

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 average variable cost of producing five ball point pens is:

• A)$3.5.
• B)$2.
• C)$4.
• D)$2.5
• E)$4.5

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Definitions:

Marginal Tax Rate

The rate at which your last dollar of income is taxed, essentially the tax rate that applies to each additional dollar of income.

Start-Up Cost

Expenses incurred before a business begins operating, including costs such as legal fees, marketing, equipment purchases, and rent.

Crossover Rate

The point at which two or more projects have the same net present value or rate of return, used in capital budgeting to compare projects.

Mutually Exclusive

Situations or events that cannot occur at the same time, often referring to investment choices or project decisions in finance.