Table 21.2 $\begin{array}{|l|r|r|r|r|}
\hline \text { Output (units per day) } & 0 & 10 & 20 & 30 \
\hline \text { Total cost (dollars per day) } & \$ 40 & \$ 54 & \$ 62 & \$ 80\
\hline
\end{array}$

At 30 units of output in Table 21.2,the total variable cost is
A)$30.
B)$40.
C)$50.
D)$80.

Question

Table 21.2 $\begin{array}{|l|r|r|r|r|}
\hline \text { Output (units per day) } & 0 & 10 & 20 & 30 \
\hline \text { Total cost (dollars per day) } & \$ 40 & \$ 54 & \$ 62 & \$ 80\
\hline
\end{array}$

At 30 units of output in Table 21.2,the total variable cost is
A)$30.
B)$40.
C)$50.
D)$80.

Quizplus · Accepted Answer

The total variable cost at 30 units of output is calculated by subtracting the total fixed costs from the total costs at 30 units. The total fixed costs can be identified as the total costs at 0 units of output, which is $40. Therefore, at 30 units, the total costs are $80, and subtracting the fixed costs ($40) from this gives a total variable cost of $40.

Table 212 At 30 Units of Output in Table 21