-Using the above table, the TC, the AFC, and the TVC when output is 2 units are
A) $20, $2.50, and $15, respectively.
B) $35, $2.50, and $30, respectively.
C) $30, $2.50, and $40, respectively.
D) $35, $2.50, and $20, respectively.

Question

-Using the above table, the TC, the AFC, and the TVC when output is 2 units are
A) $20, $2.50, and $15, respectively. 
B) $35, $2.50, and $30, respectively. 
C) $30, $2.50, and $40, respectively. 
D) $35, $2.50, and $20, respectively.

Quizplus · Accepted Answer

The Total Cost (TC) at 2 units of output includes both fixed and variable costs. The Average Fixed Cost (AFC) is calculated by dividing the total fixed costs by the quantity of output, which does not change with the level of output. The Total Variable Cost (TVC) is the part of total costs that varies with output. The correct choice must accurately reflect these definitions. Given the correct choice, TC must include both fixed and variable components, AFC must correctly represent fixed costs per unit, and TVC must align with the variable costs for 2 units of output.

-Using the Above Table, the TC, the AFC, and the TVC