When Output Is 100 Units,the Firm's Total Fixed Cost Is

question 15

Multiple Choice

When output is 100 units,the firm's total fixed cost is $500.What will this firm's total fixed cost be if output doubles to 200 units?

• A) $250
• B) $500
• C) $750
• D) $1,000
• E) $125

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Definitions:

Discontinue

To stop making or providing a product or service, often as a strategic decision by a company.

Sunk Cost

Expenses that have already been incurred and cannot be recovered or altered, which should not affect future business decisions.

Materials Costs

The expense incurred by acquiring raw materials necessary for producing goods, excluding indirect materials like maintenance supplies.

Processing Costs

Expenses related to the steps involved in transforming raw materials into finished goods.