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In the short run, _______ a) All costs are fixed costs b) All costs are variable

ID: 1232973 • Letter: I

Question

In the short run, _______
a) All costs are fixed costs
b) All costs are variable costs
c) Some costs are fixed costs
d) All costs are marginal costs

A firm has a fixed cost of $100,000, and variable cost is $90,000 at what output of one. How much marginal cost at an output of one?
a) 10,000
b) 90,000
c) 100,000
d) 190,000
e) There is insufficient information to answer the question

In the short run, a firm has two options: ________
a) Stay in business or go out of business
b) Stay in business or shut down
c) Operate or go out of business
d) Operate or shut down

Explanation / Answer

a) All costs are fixed costs b) 90,000 d) Operate or shut down