Table 12-8 -Refer to Table 12-8.What Is the Average Variable Cost of Average

question 9

Multiple Choice

Table 12-8

-Refer to Table 12-8.What is the average variable cost of producing 5 units of output?

• A) $4
• B) $5
• C) $40
• D) $44

---

Definitions:

Marginal Revenue

The increase in revenue that results from the sale of one additional unit of a product.

Perfect Competition

A market structure characterized by a large number of small firms, identical products sold by all firms, perfect information, and no barriers to entry or exit.

Marginal Revenue

The increased earnings realized from the sale of one extra good or service.

Average Revenue

The total revenue earned by a firm from selling its goods or services, divided by the quantity of goods or services sold, indicating the average income per product unit.