-Refer to the above figure. Total cost for this firm equals
A) P2.
B) P3.
C) 0P2bQ1.
D) 0P3cQ1.

Name: -Refer to the above figure. Total cost for this firm equals A) P2. B) P3. C) 0P2bQ1. D) 0P3cQ1.
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Question

-Refer to the above figure. Total cost for this firm equals
A) P2. 
B) P3. 
C) 0P2bQ1. 
D) 0P3cQ1.

Quizplus · Accepted Answer

Total cost is the sum of fixed cost and variable cost. Fixed cost is the cost that does not change with the level of output, and variable cost is the cost that changes with the level of output. In this case, the fixed cost is 0P2b and the variable cost is 0P2bQ1. Therefore, the total cost is 0P2bQ1.

-Refer to the Above Figure