A Firm That Produces Widgets Must Pay Fixed Costs of $150

question 25

Multiple Choice

A firm that produces widgets must pay fixed costs of $150. It costs an additional $30 for every widget that they produce. If the market price is $40, how many widgets does the firm have to sell so that they do not make a loss?

• A) 1
• B) 5
• C) 10
• D) 15