The Graph Below Shows a Marginal Cost Function

question 7

Multiple Choice

The graph below shows a marginal cost function, $ per item. If the fixed cost is $900, estimate the total cost of producing 250 items.

• A)$ 2850
• B)$ 1950
• C)$1530
• D)$2950

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Definitions:

Trade

The exchange of goods, services, or both between parties, usually on the basis of comparative advantage.

Absence of Trade

A situation or condition in which there is no exchange of goods or services between people or entities.

Autarky

is an economic system or policy of self-sufficiency where a country does not engage in international trade, relying instead on its own resources.

International Trade

The exchange of goods and services between countries, often influenced by regulations, tariffs, and global economic conditions.