Use the Above Table and Assume a Fixed Cost of

question 33

Multiple Choice

$$\begin{array} { c c c c c c c } & \text { Variable } & \text { Total } & & & & \text { Marginal } \\\text { Output } & \text { Cost } & \text { Cost } & \text { AFC } & \text { AVC } & \text { ATC } & \text { Cost } \\1 & 400 & & & & & \\2 & 700 & & & & & \\3 & 1,000 & & & & & \\4 & 1,400 & & & & &\end{array}$$ Use the above table and assume a fixed cost of $1000.
-At an output of 4,ATC is

• A)$250.
• B)$400.
• C)$600.
• D)$800.
• E)$1,000.

---

Definitions:

Market Price

The current price at which an asset or service can be bought or sold in a particular market, determined by the supply and demand for it.

Average Revenue

The average amount of money received per unit of product or service sold, calculated by dividing total revenue by the number of units sold.

Marginal Revenue

The additional revenue that a firm receives from selling one more unit of a product or service.

Marginal Cost

The extra financial burden of manufacturing an additional unit of a product or service.