The Table Below Shows the Total Cost of Producing Different

question 17

Multiple Choice

The table below shows the total cost of producing different units of a commodity.Table 8.2

-Refer to Table 8.2. The average fixed cost of the first unit of output is:

• A)$46.
• B)$98.
• C)$100.
• D)$50.
• E)$140.

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Definitions:

Variable Cost

Costs that vary based on a company's operations, including outlays for materials needed for manufacturing or other production-related inputs.

Economic Profit

The difference between a firm's total revenue and its total costs, including both explicit and implicit costs, representing the additional value created by the firm.

Accounting Profit

Accounting profit is the financial gain calculated by subtracting total explicit costs from total revenue.

Explicit Costs

Direct, out-of-pocket payments for wages, rent, materials, and other inputs necessary for the production of goods or services.