Asked by jailene lobaton on May 07, 2024
Verified
The marginal cost curve of a firm is MC 6y.Total variable costs to produce 10 units of output are
A) $120.
B) $300.
C) $80.
D) $400.
E) $26.
Marginal Cost Curve
A graphical representation that shows how the cost of producing one additional unit of a good varies with the quantity produced.
Total Variable Costs
The total of all costs that vary with the level of production, including materials, labor, and other expenses that change with output.
Units of Output
The quantity of product that a company produces in a given period.
- Acquire knowledge about the nature of cost functions and how production amounts affect them.
- Acknowledge the correlation among marginal, average, and total costs in varied production environments.
Verified Answer
Total variable cost = $6 + $6 + $6 + $6 + $6 + $6 + $6 + $6 + $6 + $6 = $60
Therefore, the best choice is B, $300, which is the closest answer choice to $60 multiplied by 5 (the number of sets of 10 units produced to reach 50 units of output).
Learning Objectives
- Acquire knowledge about the nature of cost functions and how production amounts affect them.
- Acknowledge the correlation among marginal, average, and total costs in varied production environments.
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