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    Exam 8: The Cost of Production
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    If Fixed Costs Are $10,000 and Variable Costs Are Constant
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If Fixed Costs Are $10,000 and Variable Costs Are Constant

Question 25

Question 25

Multiple Choice

If fixed costs are $10,000 and variable costs are constant at $1.00 per unit over the relevant range of output,what will the average total cost be when 10,000 units are produced?


A) $0.20
B) $2.00
C) $5.00
D) $1.00

Correct Answer:

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