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Acme Dynamite Has $2000 of Variable Costs and $500 of Fixed

Question 70

Multiple Choice

Acme Dynamite has $2000 of variable costs and $500 of fixed costs when its output is 250 units.It sells each unit for $25.
Average variable cost is _____ and average total cost is _______ at this output level.


A) $8;2
B) $10;10
C) $10;2
D) $8;10

Correct Answer:

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