Asked by Kamri Smith on Jul 22, 2024
Verified
Answer the question on the basis of the following cost data: Total Output Cost 0$24133241348454561669\begin{array} { c c c } &&\text { Total } \\\text { Output }&&\text { Cost }\\\hline0 & & \$ 24 \\1 & & 33 \\2 & & 41 \\3 & & 48 \\4 & & 54 \\5 & & 61 \\6 & & 69\end{array} Output 0123456 Total Cost $24334148546169 Refer to the data.The total variable cost of producing 5 units is:
A) $61.
B) $48.
C) $37.
D) $24.
Total Variable Cost
The sum of all variable expenses related to the production of goods or services, which vary with the level of output.
Total Cost
The sum of all costs incurred by a business in producing a certain quantity of a good or service.
- Estimate specific financial metrics (MC, ATC, AVC, AFC) with the data provided.
Verified Answer
AK
April KennyJul 26, 2024
Final Answer :
C
Explanation :
Total Variable Cost (TVC) is calculated by subtracting Total Fixed Cost (TFC) from Total Cost (TC). From the data, the Total Cost (TC) of producing 5 units is $61, and the Total Fixed Cost (TFC), which is the cost at 0 output, is $24. Therefore, TVC = TC - TFC = $61 - $24 = $37.
Learning Objectives
- Estimate specific financial metrics (MC, ATC, AVC, AFC) with the data provided.