Refer to the following graph.The price of capital r)is $20. What is the lowest possible cost at which 14,000 units of output can be produced?
A)$8,600
B)$2,400
C)$3,600
D)$4,200
E)none of the above

Question

Refer to the following graph.The price of capital r)is $20.  What is the lowest possible cost at which 14,000 units of output can be produced?
A)$8,600 
B)$2,400 
C)$3,600 
D)$4,200 
E)none of the above

Quizplus · Accepted Answer

To produce 14,000 units of output, we need to find the point on the total cost curve where the output is 14,000 and the cost is minimized. This is the point where the total cost curve intersects the output axis at 14,000 units. From the graph, we see that this point is closest to the $3,600 mark on the cost axis. Thus, the lowest possible cost at which 14,000 units of output can be produced is $3,600.

Refer to the Following Graph