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

Comprehend the learning curve and its implications for production costs.

Analyze long-run cost functions and their dependencies on output and experience.

Calculate optimal input combinations given a production function and budget constraints.

Apply the Lagrangian technique to solve production and cost minimization problems.

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Definitions:

Birth Parents

The biological parents of an individual, as opposed to adoptive parents or caregivers, regardless of their involvement in the individual's upbringing.

Adoptive Parents

Individuals who legally take on the responsibility of raising a child not born to them biologically.

Parenthood

The state or experience of being a parent and raising children.

Economic Recession

A period of temporary economic decline during which trade and industrial activities are reduced, generally identified by a fall in GDP in two successive quarters.