Answer the Question on the Basis of the Following Cost

question 34

Multiple Choice

Answer the question on the basis of the following cost data for a firm that is selling in a purely competitive market. $\begin{array}{ccccc}& \text { Average } & \text { Average } & \text { Average } & \\\text { Total } & \text { Fixed } & \text { Variable } & \text { Total } & \text { Marginal } \\\text { Output } & \text { Cost } & \text { Cost } & \text { Cost } & \text { Cost }\\\hline1 & \$ 150.00 & \$ 25.00 & \$ 175.00 & \$ 25.00 \\2 & 75.00 & 23.00 & 98.00 & 21.00 \\3 & 50.00 & 20.00 & 70.00 & 14.00 \\4 & 37.50 & 21.00 & 58.50 & 24.00 \\5 & 30.00 & 23.00 & 53.00 & 31.00 \\6 & 25.00 & 25.00 & 50.00 & 35.00 \\7 & 21.43 & 28.00 & 49.43 & 46.01 \\8 & 18.75 & 33.00 & 51.76 & 68.07 \\9 & 16.67 & 39.00 & 55.67 & 86.95 \\10 & 15.00 & 48.00 & 63.00 & 128.97\end{array}$ Refer to the data.We can infer that,at zero output,this firm's total fixed,total variable,and total costs are:

• A) zero,zero,and zero,respectively.
• B) zero,$25,and $175,respectively.
• C) $150,$25,and $175,respectively.
• D) $150,zero,and $150,respectively.

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Definitions:

Dilation

The process of expanding or widening an opening or structure in the body, often referring to blood vessels, the pupil of the eye, or the cervix during childbirth.

Collapse

The sudden failure or loss of strength leading to a fall or the falling in of something, such as a structure.

Orthopnea

Difficulty in breathing that is relieved by sitting or standing in an upright position, commonly associated with heart and lung diseases.

Orth/o

A prefix meaning straight, correct, or right, used in medical and technical terms.