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The Average Total Cost of Producing Cell Phones in a Factory

Question 104

Multiple Choice

The average total cost of producing cell phones in a factory is $20 at the current output level of 100 units per week.If the fixed cost is $1 200 per week:


A) the average fixed cost is $20.
B) the total cost is $3 200.
C) the variable cost is $2 000.
D) the average variable cost is $8.

Correct Answer:

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