If the Total Variable Cost of 9 Units of Output

question 30

Multiple Choice

If the total variable cost of 9 units of output is $90 and the total variable cost of 10 units of output is $120, then

• A)the average variable cost of 10 units is $10.
• B)the average variable cost of 9 units is $10.
• C)the marginal cost of the tenth unit is $90.
• D)the firm is operating in the range of increasing marginal returns.

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Definitions:

SRRS

The Social Readjustment Rating Scale, a scale designed to measure the stress load one experiences from various life events.

Major Health Problem

A significant or widespread issue affecting the health of a population.

80% Risk

A statistical term indicating an 80 percent probability that a specific event will occur or that a condition will develop.

Social Readjustment Rating Scale (SRRS)

A psychological tool used to measure the stress load individuals carry based on major life events they have experienced.