The Table Below Shows Output, Marginal Cost, and Average Variable

question 36

Multiple Choice

The table below shows output, marginal cost, and average variable cost for the production of pairs of shoes. All costs are in dollars. $$\begin{array}{l}\begin{array} { | l | l | l | } \hline \text { Output } & \begin{array} { l } \text { Marginal } \\\text { Cost }\end{array} & \begin{array} { l } \text { Average } \\\text { Variable Cost }\end{array} \\\hline 50 & 60 & 140 \\\hline 70 & 45 & 115 \\\hline 90 & 35 & 95 \\\hline 110 & 30 & 80 \\\hline 130 & 35 & 65 \\\hline 150 & 60 & 60 \\\hline 170 & 105 & 65 \\\hline 190 & 180 & 75 \\\hline 210 & 230 & 90 \\\hline 230 & 290 & 110 \\\hline\end{array}\\\text { TABLE 7- } 6\end{array}$$
-Refer to Table 7- 6. Suppose there are no fixed costs. The firm reaches it's capacity level of output when its output is equal to units.

• A) 110
• B) 150
• C) 210
• D) 190
• E) 50

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Definitions:

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A phrase indicating that numerical values, such as test scores, can vary or change over time.

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The extent to which a measurement instrument yields reliable and uniform outcomes consistently.