A Firm Has a Fixed Cost of $700 in Its

question 170

Multiple Choice

A firm has a fixed cost of $700 in its first year of operation. When the firm produces 99 units of output, its total costs are $4,000. The marginal cost of producing the 100th unit of output is $200. What is the total cost of producing 100 units?

• A)$42
• B)$900
• C)$4,200
• D)$4,900

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Definitions:

Saving Rates

The proportion of disposable income that individuals or an economy as a whole save rather than spend on consumption.

Income Growth

An increase in the amount of money earned by individuals or households over time.

Country

A distinct territorial body or political entity that is recognized as an independent nation.

Capital Accumulation

The growth of assets or wealth through investment or profits, often reinvested to generate further growth.