A Firm Is Producing 100 Units of Output at a Total

question 54

Multiple Choice

A firm is producing 100 units of output at a total cost of $400. The firm's average variable cost is $3 per unit. What is the firm's total fixed cost?

• A) $1
• B) $50
• C) $100
• D) $300

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Definitions:

Empirical Research

A way of gaining knowledge by means of direct observation or experiment, which is based on empirical evidence.

Intelligent

Having the ability to learn, understand, and apply knowledge effectively.

Companionate Love

A form of love characterized by deep affection, mutual respect, and a strong emotional bond, often found in long-term relationships.

Platonic Love

Platonic Love describes a type of love that is non-sexual and based on friendship and deep emotional connection.