Use Exhibit 2. For Comfy Chair Factory, which of the following statements is (are) correct? (x) The average fixed cost (AFC) of producing 2,000 chairs is $14 per chair and the variable cost of producing 2,000 chairs is $26,000. (y) If Comfy Chair Factory produces 3,000 chairs, the average total cost (ATC) is more than $21.25 but less than $22.50 per chair. (z) The marginal cost of producing the 2,500th chair is more than $11.50 but less than $12.50. А. (х), (у), and (z) В. Exhibit 2 Measures of Cost for Comfy Chair Factory Fixed Variable Total Quantity Costs Costs Costs $28,000 1,000 $18,000 (x) and (y), only C. (x) and (z), only D. (y) and (z), only Е. (х) only 2,000 $54,000 3,000 $38,000

Use Exhibit 2. For Comfy Chair Factory, which of the following statements is (are) correct? (x) The average fixed cost (AFC) of producing 2,000 chairs is $14 per chair and the variable cost of producing 2,000 chairs is $26,000. (y) If Comfy Chair Factory produces 3,000 chairs, the average total cost (ATC) is more than $21.25 but less than $22.50 per chair. (z) The marginal cost of producing the 2,500th chair is more than $11.50 but less than $12.50. А. (х), (у), and (z) В. Exhibit 2 Measures of Cost for Comfy Chair Factory Fixed Variable Total Quantity Costs Costs Costs $28,000 1,000 $18,000 (x) and (y), only C. (x) and (z), only D. (y) and (z), only Е. (х) only 2,000 $54,000 3,000 $38,000

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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