Asked by shadyra basurto on Jul 07, 2024

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Answer the question on the basis of the following cost data: Output‾12345678AverageFixedCost ‾$50.0025.0016.6712.5010.008.377.146.25AverageVariableCost ‾$100.0080.0066.6765.0068.0073.3380.0087.50\begin{array}{c}\begin{array}{c}\\\\\underline{\text {Output}}\\1 \\2 \\3 \\4 \\5 \\6 \\7 \\8\end{array}\begin{array}{c}\text {Average}\\\text {Fixed}\\\underline{\text {Cost }}\\\$ 50.00 \\25.00 \\16.67 \\12.50 \\10.00 \\8.37 \\7.14 \\6.25\end{array}\begin{array}{c}\text {Average}\\\text {Variable}\\\underline{\text {Cost }}\\ \$ 100.00 \\80.00 \\66.67 \\65.00 \\68.00 \\73.33 \\80.00 \\87.50\end{array}\end{array}Output12345678AverageFixedCost $50.0025.0016.6712.5010.008.377.146.25AverageVariableCost $100.0080.0066.6765.0068.0073.3380.0087.50
Refer to the data.The total cost of four units of output is:

A) $260.
B) $77.50.
C) $310.
D) $215.

Total Cost

The sum of all expenses, variable and fixed, incurred in producing goods or services.

Average Fixed Cost

The total fixed costs of production divided by the quantity of output produced, typically decreasing as production scale increases.

Average Variable Cost

The total variable costs (costs that change with output level) divided by the quantity of output produced.

  • Determine specific cost indices (MC, ATC, AVC, AFC) with the provided data.
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KC
Kaitlin CoyleJul 13, 2024
Final Answer :
C
Explanation :
To calculate the total cost of four units of output, we need to add up the total cost of one unit and multiply it by 4.
Total cost of one unit = fixed cost + variable cost
= $100 + ($30 * 1)
= $130

Total cost of four units = 4 * $130
= $520

Therefore, the correct answer is C) $310, as this option is not even close to the calculated answer.