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.

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Definitions:

Going Out Of Business

The process of closing a company permanently, often involving selling off assets and paying off creditors.

Revaluation Of Land

The process of adjusting the book value of land to reflect its current market value, often leading to an increase in assets on the balance sheet.

Ownership Equity

The residual interest in the assets of the enterprise after deducting liabilities, representing owners' share in the company.

Capital Balances

The amount of money or value that partners or owners have invested in a business.