Assume That a Firm Has $100 Million in Real Assets

question 49

Multiple Choice

Assume that a firm has $100 million in real assets and $90 in real liabilities.The value of its net worth would be ________.

• A)a negative $10 million.
• B)$190 million.
• C)$4190 billion.
• D)$10 million.

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Definitions:

Average Total Cost

The total cost of production divided by the number of units produced, representing the cost per unit of output.

Average Variable Cost

The total variable cost divided by the number of units produced, representing the variable cost per unit of output.

Average Fixed Cost Curve

A graphical representation showing how average fixed costs (costs that do not change with the level of output) decreases as production increases.

Output

The total amount of goods and services produced by an economy over a specific period.