CFA Practice Question

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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 ______.

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
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