Complete Table 21 $$\text { Table } 21.5$$ The Total Variable Cost of 2 Units of Output in }

question 71

Multiple Choice

Complete Table 21.5:
$$\begin{array}{l}\begin{array} { l ll l l l } Q&TFC&TVC&TC&AVC&MC\\0&\_\_\_\_\_&\_\_\_\_\_&15&--&--\\1&\_\_\_\_\_&\_\_\_\_\_&23&\_\_\_\_\_&\_\_\_\_\_\\2&\_\_\_\_\_&\_\_\_\_\_&\_\_\_\_\_&\_\_\_\_\_&4\\3&\_\_\_\_\_&15&\_\_\_\_\_&\_\_\_\_\_&\_\_\_\_\_\end{array}\end{array}$$
$$\text { Table } 21.5$$ The total variable cost of 2 units of output in Table 21.5 is

• A) $15.
• B) $27.
• C) $8.
• D) $12.

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Definitions:

Residual Income

The amount of income that exceeds the minimum rate of return expected on investments or capital.

Investment Opportunity

A potential financial venture, property, or stock that could generate a favorable return.

Residual Income

The income that remains after deducting all operation and investment costs, including a minimum desired return on investment.

Required Rate of Return

The minimum annual percentage earned by an investment that will entice individuals or companies to put money into a particular project or investment.