- CFA Exams
- CFA Level I Exam
- Topic 2. Economics
- Learning Module 1. The Firm and Market Structures
- Subject 3. Marginal Revenue, Marginal Cost and Profit Maximization
CFA Practice Question
When output is 500, a firm's fixed costs are $10,000 and its variable costs are $15,000. The firm's total costs are therefore ______.
B. $15,000
C. $25,000
A $10,000
B. $15,000
C. $25,000
Correct Answer: C
Total cost is the sum of fixed and variable costs.
User Contributed Comments 5
| User | Comment |
|---|---|
| chris12345 | this is quite tricky well done if you got this one....can anyone explain this for me? |
| 8thlegend | 500 is just thrown out there to trick you. If it said per unit cost then you would multiply it by 500. They give you the Total fixed cost + total variable cost. You just add the 2 and will get the answer. |
| Oarona | Total costs= total fixed costs + total variable costs |
| frants54 | too easy |
| gill15 | 8thlegend got Bazinga'd by Chris12345....nice |