If Fixed Cost Is $8,000,variable Cost Is $5,000 at an Output

question 10

Multiple Choice

If fixed cost is $8,000,variable cost is $5,000 at an output of 2 and $9,000 at an output of 3,how much is marginal cost at an output of 3?

• A)$3,000
• B)$4,000
• C)$5,000
• D)$8,000
• E)There is not enough information to determine marginal cost at an output of 3.

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Definitions:

Shifts to the Right

A phrase indicating an increase in supply or demand in economic graphs, typically showing improvement or growth.

Price Effect

Refers to the impact on consumer demand or the quantity demanded of a good when its price changes, holding other factors constant.

Quantity Effect

The change in total revenue resulting from a change in the quantity of a product sold, holding price constant.

Price Elasticity of Demand

A measure of how much the quantity demanded of a good responds to a change in the price of that good, quantitatively defined as the percentage change in quantity demanded divided by the percentage change in price.