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 three Swords, her total variable costs are
A) $13.33.
B) $70.
C) $87.50.
D) $112.25.

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 three Swords, her total variable costs are
A) $13.33.
B) $70.
C) $87.50.
D) $112.25.

Quizplus · Accepted Answer

To find the total variable costs (TVC) for producing three swords, we can use the information given for producing 5 swords (TVC = $135) and the marginal cost (MC) for producing additional swords. Since the table does not directly provide the TVC for three swords, we can infer it from the given data. The MC for producing the 4th and 5th swords can be considered to calculate the TVC for 3 swords. However, without explicit MC values for each sword beyond the first, we rely on the information that can be directly inferred or is typically known about cost structures. Given the nature of the question and the lack of specific MC values for each unit, the correct approach involves understanding that TVC increases with each additional unit produced due to the concept of MC. Since the exact MC values are not provided for each step from 1 to 5 swords, we cannot accurately calculate backwards from the 5th sword to the 3rd using MC. Therefore, the answer is derived from understanding that the TVC for 3 swords must be less than the TVC for 5 swords and that the provided options are not directly calculable with the given data. The correct answer, based on typical economic principles and the information that might be inferred, is that we look for the most plausible option given typical cost behavior, where costs accumulate as production increases.

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