Exhibit 23-8

-Refer to Exhibit 23-8.What is the total variable cost of Firm B at the profit-maximizing level of production?

Question

Exhibit 23-8
 
-Refer to Exhibit 23-8.What is the total variable cost of Firm B at the profit-maximizing level of production?

Quizplus · Accepted Answer

At the profit-maximizing level of production, Firm B produces 3 units, which incurs variable costs of $300 per unit. Thus, the total variable cost at the profit-maximizing level of production is $900 (3 units x $300 per unit). Therefore, the correct choice is D.

Exhibit 23-8 -Refer to Exhibit 23-8.What Is the Total Variable Cost of Total