A firm has a fixed production cost of $1 comma 000 and a constant marginal cost of production of $100 per unit produced. What is the firm's total cost function? A. TCequals 1 comma 000. B. TCequals 100 q. C. TCequals StartFraction 1 comma 000 plus (100 q) Over q EndFraction. D. TCequals 1 comma 000plus (100 q).

option (D) TC = $1,000 + $100q

Explanation:

Data provided in the question:

Fixed cost of production = $1,000

Marginal cost of production = $100 per unit produced

Now,

let the total number of quantities produced be 'q'

also,

the total cost is given as:

⇒ Total cost, TC = Total fixed cost + Total marginal cost

or

⇒ TC = $1,000 + ($100 * q)

or

⇒ TC = $1,000 + $100q

Hence,

The correct answer is option (D) TC = $1,000 + $100q