Refer to Table 21.5: Table 21.5
$\begin{array} { | c | c | c | c | c | c | }
\hline \mathrm { Q } & \mathrm { TFC } & \mathrm { TVC } & \mathrm { TC } & \text { AVC } & \text { MC } \
\hline 0 & & & 15 & - & - \
\hline 1 & & & 23 & & \
\hline 2 & & & & & 4 \
\hline 3 & & 15 & & & \
\hline
\end{array}$ The total cost of 3 units of output in Table 21.5 is
A)$30.
B)$15.
C)$23.
D)$38.

Question

Refer to Table 21.5: Table 21.5
$\begin{array} { | c | c | c | c | c | c | } 
\hline \mathrm { Q } & \mathrm { TFC } & \mathrm { TVC } & \mathrm { TC } & \text { AVC } & \text { MC } \
\hline 0 & & & 15 & - & - \
\hline 1 & & & 23 & & \
\hline 2 & & & & & 4 \
\hline 3 & & 15 & & & \
\hline
\end{array}$ The total cost of 3 units of output in Table 21.5 is
A)$30.
B)$15.
C)$23.
D)$38.

Quizplus · Accepted Answer

The total cost (TC) for 3 units of output can be determined by adding the total fixed cost (TFC) and the total variable cost (TVC) for 3 units. Given that the TC for 1 unit is $23 and the marginal cost (MC) for the second unit is $4, the TC for 2 units is $23 + $4 = $27. Since the total variable cost (TVC) for 3 units is $15 and knowing that TC = TFC + TVC, and TFC remains constant (as seen from the TC at 0 units being $15, which is all TFC since TVC is $0 when output is 0), we can deduce that TFC = $15. Therefore, the TC for 3 units is TFC ($15) + TVC ($15) = $30.

Refer to Table 21 The Total Cost of 3 Units of Output in Table