A Firm Has a Fixed Cost of $500 in Its

question 492

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 $3,500. When it produces 101 units of output, its total costs are $3,750. What is the marginal cost of producing the 101st unit of output?

• A)$250
• B)$275
• C)$340.91
• D)$350

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Definitions:

Fewer People

A term describing a situation or context where there is a reduced number of individuals present.

Receiving Help

The act of accepting assistance or support from others, which can be necessary in times of need, difficulty, or learning new skills.

Research

The systematic investigation into and study of materials and sources in order to establish facts and reach new conclusions.

Sense Of Solidarity

The feeling of unity and mutual support within a group, often arising from shared interests or objectives.