Refer to the information provided in Table 8.5 below to answer the question(s) that follow.
Table 8.5
$$\begin{array} { c c c c c c c c }
\hline \begin{array} { c }
\text { Number of } \
\text { Swords }
\end{array} & \text { TVC } & \text { MC } & \text { AVC } & \text { TFC } & \text { TC } & \text { AFC } & \text { ATC } \
\hline 0 & & & & & 50 & \
\hline 1 & & 25 & & & & & \
\hline 2 & & & & & &&47.50 \
\hline 3 & & & 23.33 & & & \
\hline 4 & & & & & 150 & & \
\hline 5 & 135 & & & & & & \
\hline
\end{array}$$
-Refer to Table 8.5. If Phoebe produces one sword, her total variable costs are
A) $25.
B) $50.
C) $75.
D) indeterminate from this information.

Question

Refer to the information provided in Table 8.5 below to answer the question(s) that follow.
Table 8.5
 $$\begin{array} { c c c c c c c c } 
\hline \begin{array} { c } 
\text { Number of } \
\text { Swords }
\end{array} & \text { TVC } & \text { MC } & \text { AVC } & \text { TFC } & \text { TC } & \text { AFC } & \text { ATC } \
\hline 0 & & & & & 50 & \
\hline 1 & & 25 & & & & & \
\hline 2 & & & & & &&47.50 \
\hline 3 & & & 23.33 & & & \
\hline 4 & & & & & 150 & & \
\hline 5 & 135 & & & & & & \
\hline
\end{array}$$
-Refer to Table 8.5. If Phoebe produces one sword, her total variable costs are
A) $25.
B) $50.
C) $75.
D) indeterminate from this information.

Quizplus · Accepted Answer

The marginal cost (MC) of producing the first sword is $25, which is the additional cost incurred from producing that sword. Since the total variable cost (TVC) increases with each unit produced, and the MC of the first sword is $25, it implies that the TVC for producing one sword is also $25, as it starts from $0 when no swords are produced.

Refer to the Information Provided in Table 8 -Refer to Table 8