The Sunshine Corporation Finds That Its Costs Are $40 When

question 106

Multiple Choice

The Sunshine Corporation finds that its costs are $40 when it produces no output. Its total variable costs (TVC) change with output as shown in the accompanying table. Use this information to answer the following question. The total cost of producing 3 units of output is

• A)$65.
• B)$105.
• C)$145.
• D)$185.

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Definitions:

Extraneous Variable

Any variable that you are not intentionally studying in your experiment or test that could affect the outcome of your research.

Independent Variable

The variable in an experimental setup that is manipulated or changed to observe its effect on the dependent variable.

Vitamin Supplement

Dietary additions that provide nutrients, such as vitamins or minerals, to improve health beyond what is provided by food intake.

Independent Variable

The variable in an experiment that is manipulated or changed to observe its effect on the dependent variable.