If AFC Is $9 at a Quantity of Output of 100

question 175

Multiple Choice

If AFC is $9 at a quantity of output of 100 units,and ATC is $11 at the same quantity of output,it follows that

• A) marginal cost is $10.
• B) AVC is $200.
• C) total cost is $2,000.
• D) marginal cost is $100.
• E) none of the above

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Definitions:

Average Variable Cost

The total variable cost divided by the number of units produced, reflecting the variable cost of producing each additional unit.

Total Variable Cost Curve

A graph that shows the relationship between total variable cost and the level of a firm’s output.

Factor Prices

The prices of the inputs used in the production process, such as labor, capital, and land.

Output

The total amount of goods and services produced by a business, industry, or economy.