A Firm Has a Fixed Cost of $2,000,and at an Output

question 122

Multiple Choice

A firm has a fixed cost of $2,000,and at an output of one,variable cost is $1,500.How much is marginal cost at an output of 1?

• A)$1,000
• B)$1,500
• C)$2,000
• D)$3,500
• E)There is insufficient information to find marginal cost at an output of 1.

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Definitions:

Unrecaptured 1250 Gain

A type of gain on the sale of depreciable real property that’s taxed at a different rate than other capital gains.

Depreciation

The systematic allocation of an asset's cost over its useful life, reflecting its loss of value over time.

Gift Tax

A levy imposed on the act of transferring property from one person to another without receiving full value or any compensation in return.

Purchase Price

The amount of money paid to buy a good, service, or asset; fundamental in calculating the basis for investment or tax purposes.