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If a Firm Produces 20 Units of Output and Incurs

Question 47

Multiple Choice

If a firm produces 20 units of output and incurs a total cost of $1000, and the variable cost is $700, what is 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.

Correct Answer:

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