A Firm Produces 100 Units of Output at an Average

question 3

Multiple Choice

A firm produces 100 units of output at an average variable cost of $5 and incurs a total fixed cost of $700. Which of the following is true?

• A) The firm's average total cost is $12.
• B) The firm's total variable cost is $1,200.
• C) The firm's marginal cost is constant and equal to $5.
• D) The firm's average fixed cost is $5.
• E) The firm's total cost is $500.

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Definitions:

Similar Status

A condition where individuals or entities share comparable levels of prestige, importance, or hierarchy within a social or organizational structure.

Identify

The act of recognizing or establishing who or what someone or something is.

Proportion

A part, share, or number considered in comparative relation to a whole, often used to describe the relationship between different quantities or measurements.

Nazi-Controlled

Related to or governed by the National Socialist German Workers' Party, especially during the Third Reich in Germany from 1933 to 1945.