Suppose That a Firm Is Currently Producing 1,000 Units of Output

question 383

Multiple Choice

Suppose that a firm is currently producing 1,000 units of output. At this level of output, AVC is $1 per unit, and TFC is $500. What is the firm's TC?

• A) $1,500
• B) $1,000
• C) $501
• D) $499

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Definitions:

Income Statement

A financial document that shows a company's revenues and expenses over a specific period, culminating in the net income.

Balance Sheet

A financial statement that provides a snapshot of a company's financial position at a particular date, reporting assets, liabilities, and equity.

Total Assets

The sum of all resources owned by a company, valued in monetary terms.

Total Liabilities

The sum of all financial obligations or debts that a company owes to external parties.