What Is the Total Variable Cost When Output Is 100

question 106

Multiple Choice

What is the total variable cost when output is 100 units in Figure 21.2?

• A)$9,600.
• B)$296.
• C)$200.
• D)$20,000.

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Definitions:

Economies of Scale

Cost advantages achieved by increasing production levels, resulting in lower per-unit costs due to spreading fixed costs over more units.

Long-Run Average Total Cost

A concept in economics that represents the per-unit cost of production in the long term, where all inputs are considered variable.

Scale

Refers to the size or level of operation of a process or system, often used in contexts of production, distribution, or analysis.

Returns to Scale

The change in output resulting from a proportional change in all inputs, where increases can be constant, increasing, or decreasing.