Use the figure to answer the following question(s).
Figure 8-4

Using Figure 8-4, calculate the firm's total cost of producing four units of output.

Question

Use the figure to answer the following question(s).
Figure 8-4

Using Figure 8-4, calculate the firm's total cost of producing four units of output.

Quizplus · Accepted Answer

To produce 4 units of output, the firm must produce at the quantity of 3 units where the Marginal Cost (MC) intersects with the Average Variable Cost (AVC). At the quantity of 3, the ATC is $4, so the total cost of producing 4 units would be 4 x $3 = $12. Therefore, the answer is C.

Use the Figure to Answer the Following Question(s)