The Sunshine Corporation finds that its costs are $40 when it produces no output.Its total variable costs (TVC)change with output as shown in the accompanying table.Use this information to answer the following question. $$\begin{array} { c c c }
\text { Output } & & \text { TVC } \
\hline
1 & & \$ 30 \
2 & & 50 \
3 & & 65 \
4 & & 85 \
5 & & 110
\end{array}$$ Refer to the information.The total cost of producing 3 units of output is:

Question

The Sunshine Corporation finds that its costs are $40 when it produces no output.Its total variable costs (TVC)change with output as shown in the accompanying table.Use this information to answer the following question. $$\begin{array} { c c c } 
\text { Output } & & \text { TVC } \
\hline
1 & & \$ 30 \
2 & & 50 \
3 & & 65 \
4 & & 85 \
5 & & 110
\end{array}$$ Refer to the information.The total cost of producing 3 units of output is:

Quizplus · Accepted Answer

Total cost (TC) = TVC + Fixed cost (FC)

We can find the fixed cost by subtracting the TVC from the TC when output is zero:

TC = FC + TVC 
$40 = FC + $0 
FC = $40

Now we can use the formula:

TC = $40 + TVC

To find the total cost of producing 3 units of output:

TC = $40 + $65 = $105

Therefore, the answer is B) $105.

The Sunshine Corporation Finds That Its Costs Are $40 When Output TVC 1$302503654855110\begin{array} { c c c } \text { Output } & & \text { TVC } \\\hline1 & & \$ 30 \\2 & & 50 \\3 & & 65 \\4 & & 85 \\5 & & 110\end{array} Output 12345​​ TVC $30506585110​​

The Sunshine Corporation Finds That Its Costs Are $40 When $\begin{array} { c c c } \text { Output } & & \text { TVC } \\\hline1 & & \$ 30 \\2 & & 50 \\3 & & 65 \\4 & & 85 \\5 & & 110\end{array}$