A Firm Has Fixed Costs of $2,000

question 31

Multiple Choice

A firm has fixed costs of $2,000.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 $3,000 per unit.Where y is the amount of output, the short-run total cost function is

• A)5,000y.
• B)2,000 + 3,000y.
• C)2,000/y + 3,000.
• D)2,000 + 187.50y2.
• E)2,000y + 0.19y2.

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Definitions:

Demand Curve

A graph showing the relationship between the price of a good and the amount of it that consumers are willing to purchase at each price point.

Demand Curve

A graphical representation showing the relationship between the price of a good and the quantity demanded by consumers at those prices.

Increase in Demand

describes a situation where there is a higher quantity of a product or service desired by consumers at a given price level.

Inferior Good

A type of good for which demand decreases as the income of individuals increases, inversely related to income levels.