Exhibit 7-8
-In Exhibit 7-8, when output is 10,
A) total cost equals $10
B) fixed cost equals $1
C) variable cost equals $10
D) marginal cost equals $10
E) fixed cost equals $10

Question

Exhibit 7-8 
-In Exhibit 7-8, when output is 10,
A) total cost equals $10 
B) fixed cost equals $1 
C) variable cost equals $10 
D) marginal cost equals $10 
E) fixed cost equals $10

Quizplus · Accepted Answer

When output is 10, the total cost is $60 which is the sum of fixed cost ($10) and variable cost (which is $50 at this output level). Therefore, variable cost at this output level is $10 per unit.

Exhibit 7-8 -In Exhibit 7-8, When Output Is 10