A firm has fixed costs of $2,000. 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 $3,000 per unit. Where y is the amount of output, the short-run total cost function is
A) 5,000y.
B) 2,000 + 3,000y.
C) + 3,000.
D) 2,000 + 187.50y2.
E) 2,000y + 0.19y2.

Question

A firm has fixed costs of $2,000. 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 $3,000 per unit. Where y is the amount of output, the short-run total cost function is
A) 5,000y. 
B) 2,000 + 3,000y. 
C) + 3,000. 
D) 2,000 + 187.50y2. 
E) 2,000y + 0.19y2.

Quizplus · Accepted Answer

The Answer of A firm has fixed costs of $2,000. 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 $3,000 per unit. Where y is the amount of output, the short-run total cost function is
A) 5,000y. 
B) 2,000 + 3,000y. 
C) + 3,000. 
D) 2,000 + 187.50y2. 
E) 2,000y + 0.19y2.

A Firm Has Fixed Costs of $2,000