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:

Price Taker

A market participant that accepts prevailing market prices as given, without having the power to influence these prices.

Competitive Market

A market structure characterized by many buyers and sellers, free entry and exit, and products that are similar, ensuring no single entity can control prices.

Profits

The financial gain achieved when the revenues generated from business activities exceed the expenses, taxes, and costs incurred in operating the business.

Fixed Costs

Costs that do not vary with the level of production or sales, such as rent, salaries, and insurance premiums.