Exhibit 7-5 In Exhibit 7-5, what are variable costs at 15 units of output?

Name: Exhibit 7-5 In Exhibit 7-5, what are variable costs at 15 units of output?
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Question

Exhibit 7-5  In Exhibit 7-5, what are variable costs at 15 units of output?

Quizplus · Accepted Answer

At 15 units of output, the variable cost is equal to $300 (y-intercept of the variable cost line) plus $20 for every additional unit produced (slope of the variable cost line). Therefore, variable cost at 15 units of output is $300 + ($20 x 15) = $600.

Exhibit 7-5 in Exhibit 7-5, What Are Variable Costs