The Table Below Shows the Total Cost of Producing Different

question 27

Multiple Choice

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

-Refer to Table 8.2. If the production of 2 extra units (units 11 and 12) increases total cost by $162, then:

• A)the marginal cost of the twelfth unit will be $162.
• B)the total cost of producing 12 units will be $894.
• C)the average variable cost of producing 11 units is $732.
• D)the average total cost of producing 12 units is $61.
• E)the marginal cost of the thirteenth unit will be $0.

---

Definitions:

NAFTA

The North American Free Trade Agreement, a treaty between the United States, Canada, and Mexico designed to eliminate most tariffs on trade between them, promoting economic growth.

U.S. Trade

The exchange of goods and services between the United States and other countries, including imports and exports.

Latin American Countries

Nations located in the Americas where Romance languages, primarily Spanish and Portuguese, are spoken.

North American Free Trade Agreement (NAFTA)

A treaty between the United States, Canada, and Mexico that eliminated most tariffs and trade barriers between the countries, effective from 1994 until replaced by the USMCA in 2020.