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A Firm Has the Capacity to Produce 3,100 Units Per

Question 87

Multiple Choice

A firm has the capacity to produce 3,100 units per week. At 80% capacity, the average total cost per unit is $12.50 and the average variable cost per unit is $7.50. What is the total fixed cost per week, assuming the firm is still operating within its relevant range?


A) $10,400
B) $14,400
C) $ 8,400
D) $12,400

Correct Answer:

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