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.

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Definitions:

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A psychoactive substance that is found in beverages such as beer, wine, and spirits, and can alter mood, cognition, and behavior.

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The final phase of prenatal development, starting from the ninth week of pregnancy until birth, during which significant growth and maturation of organs occur.

Prenatal Development

The process of growth and development within the womb from conception until birth.