The Figure Given Below Shows the Revenue and Cost Curves

question 72

Multiple Choice

The figure given below shows the revenue and cost curves of a perfectly competitive firm.Figure 10.2
MC: Marginal cost curve
MR: Marginal revenue curve
ATC: Average-total-cost curve
AVC: Average-variable-cost curve
-Refer to Figure 10.2. What is the firm's total fixed cost at the profit-maximizing output level?

• A)$400
• B)$300
• C)$600
• D)$450
• E)$500

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Definitions:

Opportunity Cost

Abstaining from possible rewards offered by other selections upon choosing one.

Agricultural Output

The total production of crops, livestock, and other agricultural goods within a specific period, usually expressed in quantity or value terms.

Rural India

Refers to the countryside areas of India, often characterized by agricultural communities, lesser-developed infrastructure, and traditional lifestyles.

Opportunity Cost

The value of the next best alternative that must be foregone as a result of making a decision.