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Basic Question 7 of 29
If average fixed cost is $2 and average variable cost is $3, then total cost is $5. True or False?
User Contributed Comments 4
| User | Comment |
|---|---|
| AdrianCighi | $5= AVERAGE total cost |
| guna | Watchout for the word "Average" |
| Oarona | Thanks for the hint |
| papajohn | How about if output is 1 unit? |
I just wanted to share the good news that I passed CFA Level I!!! Thank you for your help - I think the online question bank helped cut the clutter and made a positive difference.
Edward Liu
Learning Outcome Statements
determine and interpret break even and shutdown points of production, as well as how economies and diseconomies of scale affect costs under perfect and imperfect competition
CFA® 2025 Level I Curriculum, Volume 1, Module 1.