If Total Cost Is $1,000 When Output Is Zero, and Total

question 59

Multiple Choice

If total cost is $1,000 when output is zero, and total cost is $1,200 when output is one, and total cost is $1,500 when output is two, then which of the following is true ?

• A) Total fixed cost is $1,500.
• B) The marginal cost of producing the first unit of output is $1,200.
• C) The marginal cost of producing the second unit of output is $300.
• D) The average fixed cost is $750 when two units of output are produced.

Grasp the physiological and psychological mechanisms underlying pain and its modulation.

Recognize the significance of pleasure and hedonism in human behavior and motivation.

Identify the role of novelty, curiosity, and arousal in driving human behavior.

Describe the various theories related to hedonism and motivation.

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Definitions:

Economic Loss

A situation where total costs exceed total revenues, indicating that a firm is not covering its opportunity costs.

Accounting Profit

The calculated income of a business or company after subtracting all explicit costs from total revenues.

Average Variable Cost

Calculated by dividing the total variable costs by the quantity of output produced, representing the variable cost per unit of output.

MR = MC

The condition where marginal revenue equals marginal cost, often used to determine the profit-maximizing output level for a firm.