Exhibit 22-8

Refer to Exhibit 22-8. What is the total cost of firm B at the profit-maximizing (or loss-minimizing)level of production?

Question

Exhibit 22-8 ​

Refer to Exhibit 22-8. What is the total cost of firm B at the profit-maximizing (or loss-minimizing)level of production?

Quizplus · Accepted Answer

The total cost is the sum of fixed cost and variable cost. 
From the given exhibit, we know that:
Fixed cost = $1,000
Variable cost at the profit-maximizing (or loss-minimizing) level of production = $650
Total cost = Fixed cost + Variable cost = $1,000 + $650 = $1,650. 
Therefore, the correct answer is C.

Exhibit 22-8 ​ Refer to Exhibit 22-8. What Is the Total Cost of the Total

Exhibit 22-8 Refer to Exhibit 22-8. What Is the Total Cost of the Total