What Is the Total Cost Associated with Producing Eight Units

question 105

Multiple Choice

What is the total cost associated with producing eight units of the control variable,Q (identify point B in the table) ?
$\begin{array}{|c|c|c|c|c|c|c|}\hline \begin{array}{c}\text { Control } \\\text { Variable }\end{array} & \begin{array}{c}\text { Total } \\\text { Benefits }\end{array} & \begin{array}{c}\text { Total } \\\text { Costs }\end{array} & \begin{array}{c}\text { Net } \\\text { Benefits }\end{array} & \begin{array}{c}\text { Marginal } \\\text { Benefit }\end{array} & \begin{array}{c}\text { Marginal } \\\text { Cost }\end{array} & \begin{array}{c}\text { Marginal } \\\text { Net Benefit }\end{array} \\\hline Q & B(Q) & C(Q) & N(Q) & \boldsymbol{M}(Q) & \boldsymbol{M}(Q) & M N B(Q) \\\hline 0 & 0 & 0 & 0 & -- & -- & -- \\\hline 1 & 900 & 100 & 800 & 900 & 100 & 800 \\\hline 2 & 1,700 & 300 & C & 800 & 200 & 600 \\\hline 3 & 2,400 & 600 & 1,800 & 700 & E & 400 \\\hline 4 & A & 1,000 & 2,000 & 600 & 400 & 200 \\\hline 5 & 3,500 & 1,500 & 2,000 & 500 & 500 & F \\\hline 6 & 3,900 & 2,100 & 1,800 & D & 600 & -200 \\\hline 7 & 4,200 & 2,800 & 1,400 & 300 & 700 & -400 \\\hline 8 & 4,400 & B & 800 & 200 & 800 & -600 \\\hline 9 & 4,500 & 4,500 & 0 & 100 & 900 & -800 \\\hline 10 & 4,500 & 5,500 & -1,000 & 0 & 1,000 & -1000 \\\hline\end{array}$

• A) 3,000
• B) 3,600
• C) 3,800
• D) 4,200

---

Definitions:

Midpoint Formula

A method used to find the midpoint between two points on a line segment, which is the average of the x-coordinates and y-coordinates of the points.

Price Elasticity

A metric determining the responsiveness of a good's demand to its price changes.

Fishing Lures

Fishing lures are artificial baits designed to resemble the prey of fish, used by anglers to attract and catch fish.

Revenue

The total amount of money received by a company from its sales of goods or services, before any expenses are subtracted.