Notice the fixed cost is $24. 5. Refer to the above data. The variable cost of p

Question

Notice the fixed cost is $24.

5. Refer to the above data. The variable cost of producing 5 units is:
A. $61.
B. $48.
C. $37.
D. $24.

6. Refer to the above data. The average total cost of producing 3 units of output is:
A. $14.
B. $12.
C. $13.50.
D. $16.

7. Refer to the above data. The average fixed cost of producing 3 units of output is:
A. $8.
B. $7.40.
C. $5.50.
D. $6.

8. Refer to the above data. The marginal cost of producing the sixth unit of output is:
A. $24.
B. $12.
C. $16.
D. $8.

9. Refer to the above data. The profit-maximizing output for this firm:
A. is 3.
B. is 4.
C. is 5.
D. cannot be determined from the information given.

Explanation / Answer

5. Refer to the above data. The variable cost of producing 5 units is:

Fixed cost = 24

variable cost of producing 5 units = 61-24 = 37

C. $37.

6. Refer to the above data. The average total cost of producing 3 units of output is:

average total cost of producing 3 units = 48/3 = 16

D. $16.

7. Refer to the above data. The average fixed cost of producing 3 units of output is:

The average fixed cost of producing 3 units of output = 24/3 = 8

A. $8.

8. Refer to the above data. The marginal cost of producing the sixth unit of output is:

marginal cost of producing the sixth unit of output = 69-61= 8

D. $8.

9. Refer to the above data. The profit-maximizing output for this firm:

D. cannot be determined from the information given.

Because revenue information is not given

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