If a Firm Produces 20 Units of Output and Incurs

question 191

Multiple Choice

If a firm produces 20 units of output and incurs a total cost of $1,000 and a variable cost is $700, calculate the firm's average fixed cost of production if it expands output to 25 units.

• A)$300
• B)$15
• C)$12
• D)It is impossible to determine without additional information.

---

Definitions:

Fecal Contamination

The presence of fecal matter in places where it can pose health risks, such as in water, food, or on surfaces.

Glomerulonephritis

An inflammation of the glomeruli of the kidney.

Immune Disorder

A condition in which the immune system does not function properly, either overreacting or underreacting to threats, leading to illness.

Corticosteroids

A class of steroid hormones that are produced in the adrenal cortex and prescribed to reduce inflammation and suppress the immune system.