At Bert's Bootery, the Total Cost of Producing Twenty Pairs

question 523

Multiple Choice

At Bert's Bootery, the total cost of producing twenty pairs of boots is $400. The marginal cost of producing the twenty-first pair of boots is $83. We can conclude that the

• A)average variable cost of 21 pairs of boots is $23.
• B)average total cost of 21 pairs of boots is $23.
• C)average total cost of 21 pairs of boots is $15.09.
• D)marginal cost of the 20th pair of boots is $20.

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Definitions:

Lockbox

An address, usually a commercial bank, at which a company receives payments in order to speed collections from customers.

Cash Collection

The process of receiving and managing payments from customers or clients, typically in the form of money.