Suppose Chris Is a Potter Who Makes Mugs Chris's Fixed Cost Is ______ Per Day

question 123

Multiple Choice

Suppose Chris is a potter who makes mugs. His total costs depend on the number of mugs he makes each day, as shown in the table below. $$\begin{array} { | c | c | } \hline \begin{array} { c } \text { Number of } \\\text { Mugs Per Day }\end{array} & \begin{array} { c } \text { Total Cost } \\\text { Per Day }\end{array} \\\hline 0 & \$ 10 \\\hline 1 & \$ 14 \\\hline 2 & \$ 19 \\\hline 3 & \$ 25 \\\hline 4 & \$ 32 \\\hline 5 & \$ 40 \\\hline 6 & \$ 49 \\\hline\end{array}$$ Chris's fixed cost is ______ per day.

• A)$0
• B)$10
• C)$39
• D)$49

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Definitions:

Output Level

Refers to the quantity of goods or services produced by a firm or an economy at a given time.

Marginal Revenue

The additional revenue that is gained from selling one more unit of a product or service.

Marginal Cost

Expenses incurred from making one more unit of a product or service.

Average Revenue

The mean amount of money earned per unit sold, calculated by dividing the total revenue by the quantity of units sold.