Refer to the information provided in Table 8.6 below to answer the question(s) that follow.
Table 8.6 $\text {Number of}$
$\begin{array}{llllllll}
\text {Earrings}&\text { TVC}&\text { MC }&\text {AVC}&\text { TFC }&\text {TC}&\text { AFC}&\text { ATC}\
\hline0 & & & &
&& \
1 & 10& & & & \
2 & & 5& & & &15& \
3 & & & & &55& \
4 & & &10 & & & \
5 & & & & &90&\
\hline
\end{array}$

-Refer to Table 8.6. From the information in the given table,
A) the firm is in the long run.
B) the firm eventually experiences diminishing returns to its variable input.
C) the marginal cost curve intersects the average total cost curve between 3 and 4 units of output.
D) the difference between total cost and total variable cost decreases as output increases.

Question

Refer to the information provided in Table 8.6 below to answer the question(s) that follow.
Table 8.6 $\text {Number of}$
$\begin{array}{llllllll}
\text {Earrings}&\text { TVC}&\text { MC }&\text {AVC}&\text { TFC }&\text {TC}&\text { AFC}&\text { ATC}\
\hline0 & & & & 
&& \
1 & 10& & & & \
2 & & 5& & & &15& \
3 & & &  & &55& \
4 & & &10 & & & \
5 & & & & &90&\
\hline
\end{array}$

-Refer to Table 8.6. From the information in the given table,
A) the firm is in the long run.
B) the firm eventually experiences diminishing returns to its variable input.
C) the marginal cost curve intersects the average total cost curve between 3 and 4 units of output.
D) the difference between total cost and total variable cost decreases as output increases.

Quizplus · Accepted Answer

The firm eventually experiences diminishing returns to its variable input, as indicated by the increasing marginal cost (MC) from 5 to a higher value (not directly given but implied by the context and the nature of the MC and AVC values). This is a characteristic of diminishing returns, where additional units of input result in smaller increases in output.

Refer to the Information Provided in Table 8 Number of\text {Number of}Number of

Refer to the Information Provided in Table 8 $\text {Number of}$