Answer the Question on the Basis of the Following Cost

question 7

Multiple Choice

Answer the question on the basis of the following cost data: $\begin{array}{c}\begin{array}{c}\\\\\underline{\text {Output}}\\1 \\2 \\3 \\4 \\5 \\6 \\7 \\8\end{array}\begin{array}{c}\text {Average}\\\text {Fixed}\\\underline{\text {Cost }}\\\$ 50.00 \\25.00 \\16.67 \\12.50 \\10.00 \\8.37 \\7.14 \\6.25\end{array}\begin{array}{c}\text {Average}\\\text {Variable}\\\underline{\text {Cost }}\\ \$ 100.00 \\80.00 \\66.67 \\65.00 \\68.00 \\73.33 \\80.00 \\87.50\end{array}\end{array}$
Refer to the data.The average total cost of five units of output is:

• A) $69.
• B) $78.
• C) $3.
• D) $10.

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Definitions:

Consumer Goods

Products and services that are used by individuals or households to satisfy their immediate wants and needs.

Production Possibilities

The various combinations of goods and services an economy can produce when all its resources are fully employed.

Capital Goods

Long-lasting goods that are used in the production of other goods or services and are not consumed in the production process.

Consumer Goods

Products that are purchased for consumption by the average consumer.