Suppose the Marginal Cost for X Units of a Good

question 272

Multiple Choice

Suppose the marginal cost for x units of a good is (dollars per unit) and if the fixed cost is $200. What is the total cost of producing 4 units of this good? Round your answer to the nearest dollar. ​

• A) 168 dollars
• B) 226 dollars
• C) 228 dollars
• D) 170 dollars
• E) 240 dollars

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Definitions:

Cost of Goods Sold

Represents the total expense incurred from creating or acquiring the goods that a business sells during a period, crucial for evaluating profitability.

Income Statement

A financial statement that shows a company's revenue and expenses over a specific period, resulting in a net income or loss.

Cost of Goods Sold

Expenses directly connected to the crafting of merchandise a company markets, comprising materials and labor.

Finished Goods

The inventory that has completed all stages of production and is ready to be sold to customers.