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:

Simple Reflexes

Basic, involuntary responses to stimuli, such as the knee-jerk reflex, that are mediated by the spinal cord and brainstem.

Cognitive Structures

Mental frameworks or patterns that help individuals organize and interpret information.

Perceptual Abilities

The capacity to interpret, analyze, and give meaning to sensory information.

Concrete Operational

A stage in Piaget's theory of cognitive development where children gain the ability to think logically about concrete events and understand the concept of conservation.