Suppose a Firm Is Producing 500 Units of Output,incurring a Total

question 39

Multiple Choice

Suppose a firm is producing 500 units of output,incurring a total cost of $700 000 and total fixed cost of $100 000.It can be concluded that average variable cost is

• A)$1200.
• B)$1600.
• C)$1400.
• D)$600.
• E)$200.

---

Definitions:

Acid Catalysis

A process where an acid is used to accelerate a chemical reaction, often by increasing the concentration of hydrogen ions in the reaction environment.

Organic Product

A compound or substance that has been derived from living organisms and contains carbon.

Base

A substance that can accept hydrogen ions (protons) or more generally, donate a pair of valence electrons; in water, it increases the concentration of hydroxide ions (OH-).

IR Spectroscopy

A technique in analytical chemistry used to identify and study chemicals through the interaction of infrared radiation with matter.