The Following Table Shows the Cost of Producing Different Units

question 80

Multiple Choice

The following table shows the cost of producing different units of ball point pens by a firm.Table 8.1

-If the average total cost of producing 2 pounds of cheese is $4 and the average total cost of producing 3 pounds of cheese is $4.2, then the marginal cost of producing third pound of cheese is equal to:

• A)$4.2.
• B)$8.
• C)$4.5.
• D)$4.6.
• E)$4.1.

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Definitions:

Existing Capacity

Current maximum level of output or production that a facility can achieve under normal conditions.

Additional Minute

Additional Minute refers to any extra time accounted for or needed beyond what was initially planned or scheduled, often in context to services or operations.

Most Profitable

Describes a scenario, product, or entity generating the highest profit margin or net income compared to others in a comparative set.

Product A

An arbitrary term that could refer to any first product offered by a company in a given context.