The Following Table Shows the Short-Run Total Cost Data for a Firm

question 190

Multiple Choice

The following table shows the short-run total cost data for a firm. All of the following are correct, except that the firm has

• A) economies of scale.
• B) fixed costs of $80.
• C) constant marginal cost.
• D) an average fixed cost of $20 at 4 units of output.

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Definitions:

Budget Line

A visual depiction showing every potential mix of two products that a specific income and price levels can buy.

Utility

In economics, the total satisfaction received from consuming a good or service.

Indifference Map

A graphical representation of different combinations of two goods or bundles among which a consumer is indifferent.

Indifference Curve

A graph representing combinations of goods or services among which a consumer is indifferent, showing preference levels and the trade-offs between different bundles.