The Table Below Shows the Total Cost of Producing Different

question 69

Multiple Choice

The table below shows the total cost of producing different units of a commodity. Table 21.2
Refer to Table 21.2.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 thirteenth unit will have to go up in price.

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Definitions:

Scientific Method

A systematic and logical approach to discovering how things in the universe work, involving observation, hypothesis formulation, experimentation, and conclusion drawing.

Circular-flow Diagram

A model that illustrates how goods, services, and money move through an economy, depicting the interactions between households and businesses.

Participants

Individuals or entities that take part in a process or activity.

Factors Of Production

The resources used in the production of goods and services, which include land, labor, capital, and entrepreneurship.