A Firm Has a Fixed Cost of $500 in Its

question 551

Multiple Choice

A firm has a fixed cost of $500 in its first year of operation. When the firm produces 100 units of output, its total costs are $4,500. The marginal cost of producing the 101st unit of output is $300. What is the total cost of producing 101 units?

• A)$46.53
• B)$800
• C)$4,800
• D)$5,300

---

Definitions:

Antiseptic Surroundings

Environments that are clean, sterile, and designed to minimize the risk of infection or contamination.

Home Births

Childbirth that occurs at home rather than in a hospital or birthing center, often involving a midwife or other healthcare professional.

Fetus's Respiration

The process by which a fetus engages in movements that simulate breathing, essential for lung development before birth.

Birth Process

The physiological sequence of events that lead to the delivery of a baby from the mother's uterus into the outside world.