You run a small business producing picture frames. This month your total cost is $10,000, your variable cost is $5,000, and your output is 5,000 picture frames. Given this information, your:
A. average variable cost is $2.
B. average total cost is $1.
C. average total cost is $3.
D. average fixed cost is $1.
Answer: D
Economics
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An income tax to pay for national defense can approximate a _____ if there is a close relationship between income and _____
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Economics