Assume That in the Short Run a Firm Is Producing

question 289

Multiple Choice

Assume that in the short run a firm is producing 100 units of output, has average total costs of $200, and has average variable costs of $150. The firm's total variable costs are.

• A)$15,000.
• B)$20,000.
• C)$50.
• D)$5,000.

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Definitions:

Administrative Fee

Charges imposed by investment funds or companies to cover operational and management expenses.

Net Working Capital

The difference between a company's current assets and current liabilities, indicating the liquidity of the business.

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or the operating cycle, whichever is longer.

Revolving Credit Agreement

A banking agreement that allows the borrower to withdraw, repay, and redraw loans advanced to them up to a specified amount.