A Firm's Total Fixed Cost Is $100

question 61

Multiple Choice

A firm's total fixed cost is $100.If total cost is $200 for one unit of output and $310 for two units,what is the marginal cost of the second unit?

• A)$100
• B)$110
• C)$200
• D)$210
• E)$310

Grasp the fundamentals of capital structure, including the effects of debt-to-equity ratios on financing.

Apply the cost of capital concepts, including the weighted average cost of capital (WACC), in project evaluation.

Understand and calculate the cost of equity and debt financing.

Evaluate the effect of a project's risk on its required rate of return and capital cost.

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