-Refer to the Above Table

question 225

Multiple Choice

-Refer to the above table. What are total fixed costs at an output of 2 units?

• A) $50
• B) $100
• C) $150
• D) $200

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Definitions:

Quasi-Fixed Costs

Costs that are not directly variable with the level of output but can change over time with scale of operations, such as salaries for permanent staff.

Positive Output

Production of goods or services in a quantity that exceeds zero.

Short-Run Cost Function

A mathematical relation describing how production costs change with output levels over a short period, where some inputs are fixed.

Positive Amount

A numerical value greater than zero, indicating a quantity that is present or an action that increases size or quantity.