In the above figure,what is the TOTAL cost of producing 5 units of output?
A)$10
B)$60
C)$100
D)$225
E)$2,000

Question

In the above figure,what is the TOTAL cost of producing 5 units of output?
A)$10 
B)$60 
C)$100 
D)$225 
E)$2,000

Quizplus · Accepted Answer

To produce 1 unit of output, the fixed cost is $20 and the variable cost is $16, so the total cost per unit is $20 + $16 = $36.
Therefore, to produce 5 units of output, the total cost will be 5 x $36 = $180.
However, there is an additional cost of $20 for producing 5 units, which brings the total cost to $180 + $20 = $200.
Therefore, the correct answer is C) $100.

In the Above Figure,what Is the TOTAL Cost of Producing