Exhibit 7-8
-In Exhibit 7-8, when output is 10,
A) total cost equals $80
B) fixed cost equals $10
C) variable cost equals $70
D) marginal cost equals $10
E) fixed cost equals $7

Question

Exhibit 7-8 
-In Exhibit 7-8, when output is 10,
A) total cost equals $80 
B) fixed cost equals $10 
C) variable cost equals $70 
D) marginal cost equals $10 
E) fixed cost equals $7

Quizplus · Accepted Answer

The total cost is the sum of fixed and variable costs. If output is 10 and total cost is $80, it implies that the sum of fixed and variable costs at this output level is $80.

Exhibit 7-8 -In Exhibit 7-8, When Output Is 10