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.
C
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As a typical firm increases its output, its marginal cost
A) is constant. B) decreases at first and then increases. C) increases at first and then decreases. D) decreases. E) is negative at first and then positive.
A monopoly is allocatively efficient compared to perfect competition
Indicate whether the statement is true or false
Entrepreneurship is the act of starting new firms and taking the risks that are necessary in business opportunities.
Answer the following statement true (T) or false (F)
Transfer pricing is a strategy that may be used by MNEs to ________.
A) reduce consolidated corporate income taxes B) partially finance a subsidiary in another country C) transfer funds from a subsidiary to the parent corporation D) all of the above