Suppose That a Firm Is Currently Producing 1,000 Units of Output

question 383

Multiple Choice

Suppose that a firm is currently producing 1,000 units of output. At this level of output, AVC is $1 per unit, and TFC is $500. What is the firm's TC?

• A) $1,500
• B) $1,000
• C) $501
• D) $499

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Definitions:

Classes Of Partners

Refers to the various types of partnership roles in a business, such as general partners, limited partners, and managing partners, each bearing different degrees of liability and responsibility.

Unlimited Liability

A legal obligation where a business owner or investor is personally responsible for all the debts of the business, without any limit on the amount they can be required to pay.

Investor

An individual or organization that allocates capital with the expectation of earning a financial return.

Corporation

A legal entity that is separate from its owners, providing them with limited liability, and recognized as a person under law that can enter into contracts, own assets, and be sued.