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:

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The connections and obligations among individuals, organizations, and governments under the rule of law.

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Moral principles that govern a person's behavior or the conducting of an activity, often fundamental to business practices.

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