Solved

You Operate a Factory That Produces Beach Towels

Question 48

Multiple Choice

You operate a factory that produces beach towels. Your current level of output equals 2000 towels per week. Your weekly variable cost equals $8000. If your total cost each week equals $9000, what can you conclude about the fixed costs of production?


A) that the total cost equals $17 000
B) that the total fixed cost equals $8 per towel
C) that the average fixed cost equals 50 cents per towel
D) that the average fixed cost equals $1000

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents