Refer to the following:
The price of capital (r) is $20.

-What is the lowest possible cost of producing 5,000 units of output?
A) $1,800
B) $2,400
C) $2,600
D) $1,400
E) $3,000

Question

Refer to the following:
The price of capital (r) is $20.
 
-What is the lowest possible cost of producing 5,000 units of output?
A) $1,800 
B) $2,400 
C) $2,600 
D) $1,400 
E) $3,000

Quizplus · Accepted Answer

The lowest possible cost of producing 5,000 units of output is $1,800. This is because the variable cost per unit is $0.36, and the fixed cost is $1,440. Therefore, the total cost of producing 5,000 units of output is $1,800 (5,000 x $0.36 + $1,440).

Refer to the Following