Table 8-7 Table 8-7 Shows Cost Data for Lotus Lanterns, a Producer

question 139

Multiple Choice

Table 8-7
$\begin{array}{|c|c|c|c|c|}\hline \begin{array}{c}\text { Quantity of } \\\text { Lanterns }\end{array} & \begin{array}{c}\text { Fixed Cost } \\\text { (dollars) }\end{array} & \begin{array}{c}\text { Variable Cost } \\\text { (dollars) }\end{array} & \begin{array}{c}\text { Total Cost } \\\text { (dollars) }\end{array} & \begin{array}{c}\text { Average Total } \\\text { Cost (dollars) }\end{array} \\\hline 75 & 200 & 170 & 370 & 4.93 \\\hline 80 & 200 & 230 & 430 & 5.36 \\\hline 90 & 200 & & & 7.67 \\\hline 100 & 200 & 810 & & 11.8 \\\hline 115 & 200 & & & 12.5 \\\hline 117 & 200 & 1264 & 1464 & \\\hline 120 & 200 & 1480 & & \\\hline\end{array}$ Table 8-7 shows cost data for Lotus Lanterns, a producer of whimsical night lights.
-Refer to Table 8-7.What is the average total cost of production when the firm produces 120 lanterns?

• A) $1,680
• B) $72
• C) $14
• D) $12.3

---

Definitions:

Extinction

In psychology, the gradual weakening of a conditioned response by not reinforcing the conditioning stimulus.

Conditioned Forgetting

A phenomenon where memory is lost or altered due to the introduction of specific conditions or stimuli, often involving the suppression of unwanted memories.

Suppression

The conscious effort to stop thinking about certain thoughts or feelings.

Inhibition

A psychological or physiological process that reduces or suppresses the response to stimuli.