Question
Refer to the table below. Quantity Variable Cost (in dollars) Fixed Costs (in dollars) Total Costs (in dollars) Average Variable Costs (in dollars per unit)
Refer to the table below. Quantity Variable Cost (in dollars) Fixed Costs (in dollars) Total Costs (in dollars) Average Variable Costs (in dollars per unit) Average Total Costs (in dollars per unit) Marginal Costs (in dollars per unit) 0 0 40 40 - - - - - - 1 15 40 55 15 55 15 2 35 40 75 17.5 37.5 20 3 60 40 100 20 33.3 25 4 90 40 130 22.5 32.5 30 5 125 40 165 25 33 35 6 160 40 200 26.6 33.3 35 If the firm sells 5 units at a price of $30 each, then the marginal unit produced Question 6 options: a) costs less than the average cost. b) costs the same as the average cost. c) is subtracting from profits. d) is adding to profits.
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