In the Short Run, the Marginal Cost of the First

question 121

Multiple Choice

In the short run, the marginal cost of the first unit of output is $20, the average variable cost of producing three units of output is $16, and the marginal cost of producing the second unit of output is $16. What is the marginal cost of producing the third unit of output?

• A) $12
• B) $16
• C) $20
• D) $48

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Definitions:

Torque Motor

Motor designed to operate with the rotor stalled without damage to the motor.

Repulsion Motor

A type of induction motor that operates on the principle of repulsion between two magnetic fields, resulting in rotor movement.

Capacitor-start Capacitor-run Motor

A type of single-phase induction motor that uses a capacitor in both the starting and running circuits for better efficiency and torque.