A Firm Has a Fixed Cost of $200 in Its

question 256

Multiple Choice

A firm has a fixed cost of $200 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 $700. What is the total cost of producing 100 units?

• A)$900
• B)$4,200
• C)$4,700
• D)$4,900

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Definitions:

Target Variable

In statistical modeling and machine learning, the variable that is the object of prediction or explanation.

Judgment-Based Forecasting

This method of forecasting relies on expert opinions and intuition rather than statistical data or mathematical models.

Customer Groups

Segments of potential consumers categorized by specific characteristics, interests, or behaviors, which businesses target with tailored marketing efforts.