A Firm Has Fixed Costs of $4,000

question 4

Multiple Choice

A firm has fixed costs of $4,000.Its short-run production function is y = 4x^1/2, where x is the amount of variable factor it uses.The price of the variable factor is $4,000 per unit.Where y is the amount of output, the short-run total cost function is

• A)4,000/y + 4,000.
• B)8,000y.
• C)4,000 + 4,000y.
• D)4,000 + 250y2.
• E)4,000 + 0.25y2.

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Definitions:

ATP

Adenosine triphosphate, a molecule that stores and transfers energy within cells, acting as a main energy currency.

Potential Energy

The energy stored in an object due to its position, composition, or condition, with the potential to cause changes when released.

Molecules

Groups of two or more atoms held together by chemical bonds, representing the smallest fundamental unit of a chemical compound that can take part in a chemical reaction.

Active Site

A specific region of an enzyme (generally near the surface) that accepts one or more substrates and catalyzes a chemical reaction. Compare with allosteric site.