Notice the costs of production for a firm in the table below. What are the total costs for outputs of 7 units and 8 units respectively?
A) $20.12; $19.33
B) $17.25; $18.32
C) $19.33; $20.12
D) $9.33; $10.12

Question

Notice the costs of production for a firm in the table below. What are the total costs for outputs of 7 units and 8 units respectively? 
A) $20.12; $19.33 
B) $17.25; $18.32 
C) $19.33; $20.12 
D) $9.33; $10.12

Quizplus · Accepted Answer

To calculate the total cost, we need to add the fixed cost to the variable cost.

For output of 7 units, the total cost is $13.21 + $5.12 x 7 = $19.33.

For output of 8 units, the total cost is $13.21 + $5.12 x 8 = $20.12.

Therefore, the best choice is C, which corresponds to the correct total costs for outputs of 7 units and 8 units.

Notice the Costs of Production for a Firm in the Table