A Firm Has Fixed Costs of $4,000

question 64

Multiple Choice

A firm has fixed costs of $4,000. Its short-run production function is y = 4 , where x is the amount of variable factor it uses. The price of the variable factor is $4,000 per unit. Where y is the amount of output, the short-run total cost function is

• A) + 4,000.
• B) 8,000y.
• C) 4,000 + 4,000y.
• D) 4,000 + 250y2.
• E) 4,000 + 0.25y2.

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Definitions:

Risky Stock

Shares of a company with a high level of risk, often due to volatility, uncertainty, or both, potentially leading to high returns or losses.

Diversified Portfolio

An investment portfolio constructed with a mix of assets to reduce exposure to risk associated with any single asset or asset class.

Market Risk

The risk of losses in investments due to factors that affect the entire market, such as economic shifts or political events.

Asset-Specific Risk

The risk associated with holding a particular asset, which can be reduced through diversification.