Table 71 Table 71 Shows the Short-Run Cost Data of a Perfectly Competitive

question 185

Multiple Choice

Table 7.1
$$\begin{array} { | c | c | c | } \hline \text { Quantity } & \begin{array} { c } \text { Total Cost } \\\text { (dollars) }\end{array} & \begin{array} { c } \text { Variable Cost } \\\text { (dollars) }\end{array} \\\hline 0 & \$ 1000 & \$ 0 \\\hline 100 & 1360 & 360 \\\hline 200 & 1560 & 560 \\\hline 300 & 1960 & 960 \\\hline 400 & 2760 & 1760 \\\hline 500 & 4000 & 3000 \\\hline 600 & 5800 & 4800 \\\hline\end{array}$$ Table 7.1 shows the short-run cost data of a perfectly competitive firm that produces plastic camera cases. Assume that output can only be increased in batches of 100 units.
-Refer to Table 7.1.The fixed cost of production is

• A) $0
• B) $500
• C) $1000
• D) It cannot be determined.

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Definitions:

Interest Revenue

Income earned by an entity from lending money or from investments in interest-bearing assets like bonds, savings accounts, or loans.

Unadjusted Trial Balance

A list of all the ledger accounts with their balances at a specific point in time before any adjustments have been made.

Adjusted Trial Balance

A list of all accounts and their balances after adjusting entries are made, used to verify the equality of debits and credits in the accounting process.

Unearned Rent

Income received for rent that has yet to be earned, typically because the service period has not yet been completed; it is recorded as a liability.