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Basic Question 6 of 29
When output is 500, a firm's fixed costs are $10,000 and its variable costs are $15,000. The firm's total costs are therefore ______.
B. $15,000
C. $25,000
A $10,000
B. $15,000
C. $25,000
User Contributed Comments 5
| User | Comment |
|---|---|
| chris12345 | this is quite tricky well done if you got this one....can anyone explain this for me? |
| 8thlegend | 500 is just thrown out there to trick you. If it said per unit cost then you would multiply it by 500. They give you the Total fixed cost + total variable cost. You just add the 2 and will get the answer. |
| Oarona | Total costs= total fixed costs + total variable costs |
| frants54 | too easy |
| gill15 | 8thlegend got Bazinga'd by Chris12345....nice |
I am using your study notes and I know of at least 5 other friends of mine who used it and passed the exam last Dec. Keep up your great work!
Barnes
Learning Outcome Statements
determine and interpret break even and shutdown points of production, as well as how economies and diseconomies of scale affect costs under perfect and imperfect competition
CFA® 2024 Level I Curriculum, Volume 1, Module 1.