Answer the Question on the Basis of the Following Cost

question 15

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 marginal cost curve would intersect the average variable cost curve at about:

• A) 2 units of output.
• B) 4 units of output.
• C) 6 units of output.
• D) 7 units of output.

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