Assume That in the Short Run a Firm Is Producing

question 9

Multiple Choice

Assume that in the short run a firm is producing 200 units of output, has average total costs of $250, and has average variable costs of $150. The firm's total fixed costs are.

• A)$20,000.
• B)$2.
• C)$0.5.
• D)$100.

---

Definitions:

Total Amount

The entire sum of money required for or received from a transaction.

Exact Simple Interest

Interest calculated exactly on the principal amount of a loan or investment, without compounding, over a specific period of time.

365-Day Year

A calendar year approach used in financial calculations, assuming the year has exactly 365 days for the purpose of interest computation.

Hair Salon

A business establishment offering services related to hair treatment, such as cutting, coloring, and styling.