If a Firm Has a Total Fixed Cost of $75

question 89

Multiple Choice

If a firm has a total fixed cost of $75 and an average variable cost of $35 for producing 10 units of output, the average total cost would be:

• A) $425.
• B) $42.50.
• C) $110.
• D) $350.

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Definitions:

Consumption Function

A formula that expresses the relationship between total consumption and gross national income.

Standard Deviation

A statistic that measures the dispersion or variability of a dataset relative to its mean, used to quantify the amount of variation or dispersion of a set of values.

Aggregate Income

The total income earned by all factors of production in an economy, including wages, rents, interest, and profits.

Aggregate Consumption

The total amount of goods and services consumed in an economy, often used to analyze economic health and growth.