The total cost of producing three units of a product is $90.00. The average total cost when four units are produced is $24.00. Based on this information, which of the following statements is true?

Question

Quizplus · Accepted Answer

The total cost for four units is $24.00 * 4 = $96.00, making statement A true. The cost for three units is $90.00, so the cost of the fourth unit (marginal cost) is $96.00 - $90.00 = $6.00, making statement B true. The average cost for three units is $90.00 / 3 = $30.00, making statement C true. Therefore, all statements are correct.

The Total Cost of Producing Three Units of a Product