- CFA Exams
- CFA Exam: Level I 2021
- Study Session 4. Economics (1)
- Reading 12. Topics in Demand and Supply Analysis
- Subject 6. Marginal Revenue, Marginal Cost, and Profit Maximization

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**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.

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**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 |