If Total Cost Equals $2,000 and Quantity Produced Is 100

question 13

Multiple Choice

If total cost equals $2,000 and quantity produced is 100 units,then

• A)fixed cost is $200 and average variable cost is $18.
• B)fixed cost is $600 and average variable cost is $14.
• C)fixed cost is $500 and marginal cost is $15.
• D)Either A or B can be correct.

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Definitions:

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Law of Reciprocity

A social norm suggesting that when someone does something for you, you naturally will want to reciprocate or return the favor in some manner.

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Manager

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