A Firm Has a Fixed Cost of $500 in Its

question 492

Multiple Choice

A firm has a fixed cost of $500 in its first year of operation. When the firm produces 100 units of output, its total costs are $3,500. When it produces 101 units of output, its total costs are $3,750. What is the marginal cost of producing the 101st unit of output?

• A)$250
• B)$275
• C)$340.91
• D)$350

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Definitions:

Internal Factors

Elements within an organization that can influence its operations, including its personnel, culture, and internal processes.

External Factors

Elements outside of an individual's or organization's control that can influence outcomes, such as economic conditions, societal trends, or technological changes.

Consistency

The quality of achieving a level of performance or behavior that does not vary greatly in quality over time.

Consistency

denotes the attribute of being uniform, stable, and unchanging over a period of time.