The Table Given Below Shows the Average Total Cost of Production

question 28

Multiple Choice

The table given below shows the average total cost of production of a firm at different levels of the output. Table 7.5
In Table 7.5, the marginal cost of producing the third unit of output is:

• A)$7.
• B)$8.
• C)$5.
• D)$4.
• E)$6.

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Definitions:

Negative Cash Balance

A situation where a company or individual's cash account balance drops below zero, indicating that the account is overdrawn.

Current Liability

Short-term financial obligations that are due within one year or within a normal operating cycle.

Bank Indebtedness

The amount of debt owed to banks by an individual or corporation, typically arising from loans or overdrafts.

Payroll Liabilities

Financial obligations related to employee compensation, including owed wages, salaries, and other benefits, which a company must pay.