Exhibit 6-4
-Refer to Exhibit 6-4. Suppose the firm has fixed costs of $30. What is the total cost if output is 5 units?
A)$80
B)$104
C)$30
D)$50
E)$62

Question

Exhibit 6-4 
-Refer to Exhibit 6-4. Suppose the firm has fixed costs of $30. What is the total cost if output is 5 units?
A)$80 
B)$104 
C)$30 
D)$50 
E)$62

Quizplus · Accepted Answer

Total cost includes both fixed costs and variable costs. Given that fixed costs are $30 and the variable cost for 5 units (from the exhibit, assuming it provides the variable cost information) is added to this, the total cost for 5 units is $80.

Exhibit 6-4 -Refer to Exhibit 6-4. Suppose the Firm Has Fixed Costs