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:

Levels

Refers to the different values or categories of a variable in a study or analysis.

Degrees Of Freedom

The number of values in a statistical calculation that are free to vary for the purpose of estimating a parameter or fitting a model.

Two Way ANOVA

A statistical test used to determine the effect of two nominal predictor variables on a continuous outcome variable.

Interaction

In statistics, an occurrence when the effect of one variable depends on the level of another variable.