Question - Calculating Total Cost at Specific Output Level for Three Different Sized Firms

Solution:

To find the total cost for an output level of 5 units for three different firm sizes:

For Loji 1:

\text{Cost for 5 units} = 2.50 \times 5 = 12.50 \text{ RM}

For Loji 2:

\text{Cost for 5 units} = 2.00 \times 5 = 10.00 \text{ RM}

For Loji 3:

\text{Cost for 5 units} = 1.00 \times 5 = 5.00 \text{ RM}

Add the costs from all three firms:

\text{Total cost} = 12.50 + 10.00 + 5.00 = 27.50 \text{ RM}

None of the options A, B, C, or D match the calculated total of 27.50 RM, so this might be a trick question or there's a mistake in the provided options.

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