Figure 14-3
Suppose a firm operating in a competitive market has the following cost curves:
-Refer to Figure 14-3. If the market price is $10, what is the firm's total cost?
A)$15
B)$30
C)$35
D)$50

Question

Figure 14-3
Suppose a firm operating in a competitive market has the following cost curves: 
-Refer to Figure 14-3. If the market price is $10, what is the firm's total cost?
A)$15 
B)$30 
C)$35 
D)$50

Quizplus · Accepted Answer

The firm's total cost is equal to the sum of its fixed costs and its variable costs. The firm's fixed costs are $15, and its variable costs are $20. Therefore, the firm's total cost is $15 + $20 = $35.

Figure 14-3 Suppose a Firm Operating in a Competitive Market Has the Has