Refer to the short-run information provided in Figure 8.5 below to answer the question(s) that follow

Figure 8.5
-Refer to Figure 8.4. If two microwave ovens are produced, Micro Oven's total variable costs are
A) $150.
B) $300.
C) $450.
D) indeterminate from this information.

Question

Refer to the short-run information provided in Figure 8.5 below to answer the question(s) that follow

Figure 8.5
-Refer to Figure 8.4. If two microwave ovens are produced, Micro Oven's total variable costs are
A) $150. 
B) $300. 
C) $450. 
D) indeterminate from this information.

Quizplus · Accepted Answer

Total Variable Costs (TVC) increase with each unit produced. If producing one microwave oven costs $150 in variable costs, producing two would double that amount to $300. However, the question asks for the total variable costs when two units are produced, which is directly given as $150 in the options, indicating a possible misunderstanding in the question's phrasing or options. The correct interpretation based on standard economic principles and the options provided would be that $150 is the cost for one unit, making the question's phrasing or provided options potentially misleading.

Refer to the Short-Run Information Provided in Figure 8