A firm has fixed costs of $4,000. Its short-run production function is y = 4 , where x is the amount of variable factor it uses. The price of the variable factor is $4,000 per unit. Where y is the amount of output, the short-run total cost function is
A) + 4,000.
B) 8,000y.
C) 4,000 + 4,000y.
D) 4,000 + 250y2.
E) 4,000 + 0.25y2.

Question

A firm has fixed costs of $4,000. Its short-run production function is y = 4  , where x is the amount of variable factor it uses. The price of the variable factor is $4,000 per unit. Where y is the amount of output, the short-run total cost function is
A) + 4,000. 
B) 8,000y. 
C) 4,000 + 4,000y. 
D) 4,000 + 250y2. 
E) 4,000 + 0.25y2.

Quizplus · Accepted Answer

The Answer of A firm has fixed costs of $4,000. Its short-run production function is y = 4  , where x is the amount of variable factor it uses. The price of the variable factor is $4,000 per unit. Where y is the amount of output, the short-run total cost function is
A) + 4,000. 
B) 8,000y. 
C) 4,000 + 4,000y. 
D) 4,000 + 250y2. 
E) 4,000 + 0.25y2.

A Firm Has Fixed Costs of $4,000