Given the Following Cost Data, What Type of Cost Is

question 87

Multiple Choice

Given the following cost data, what type of cost is shown? $$\begin{array} { | l | l | } \hline { \text { Total Cost } } & \text { Number of Units } \\\hline \$ 8,000 & 1 \\\hline \$ 8,500 & 2 \\\hline \$ 9,000 & 3 \\\hline \$ 9,500 & 4 \\\hline\end{array}$$

• A) mixed cost
• B) variable cost
• C) fixed cost
• D) period cost

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Definitions:

Industry Supply Curve

A graphical representation showing the relationship between the price of a good and the total output of the industry for that good.

Elastic

Describes a situation where the quantity demanded or supplied changes significantly in response to a change in price.

Average Variable Cost

The total variable cost divided by the quantity of output produced, representing the variable cost of producing one unit of a good or service.

Short Run

A period during which at least one factor of production is fixed, affecting the production capacity.