Assume the Following Total Cost Schedule for a Perfectly Competitive

question 20

Multiple Choice

Assume the following total cost schedule for a perfectly competitive firm. $$\begin{array} { | c | c | c | } \hline \text { Output } & \text { TVC } ( \$ ) & \text { TFC } ( \$ ) \\\hline 0 & 0 & 100 \\\hline 1 & 40 & 100 \\\hline 2 & 70 & 100 \\\hline 3 & 120 & 100 \\\hline 4 & 180 & 100 \\\hline 5 & 250 & 100 \\\hline 6 & 330 & 100 \\\hline\end{array}$$ TABLE 9- 2
-Refer to Table 9- 2.If the firm is producing at an output level of 2 units,the ATC is _ and the AVC is _ .

• A)$140; $40
• B)$50; $50
• C)$85; $35
• D)$100; $70
• E)$70; $35

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Definitions:

Linear Model

A statistical model that assumes a linear relationship between input variables and the single output variable, where the output can be calculated from a linear combination of the inputs.

Scatterplot

A type of data visualization that uses dots to represent the values of two different variables, allowing the relationship between them to be observed.

Golf Ball

A small, hard ball used in the game of golf, typically white and covered with dimples to reduce air resistance during flight.

Bounce Height

The vertical distance a dropped object reaches after rebounding off a surface, often used to measure elasticity or energy efficiency.