Quantity of Output Total Fixed Cost Total Variable Cost 1 $40 $30 2 $40 $44 3 $4
ID: 1236071 • Letter: Q
Question
Quantity of Output
Total Fixed Cost
Total Variable Cost
1
$40
$30
2
$40
$44
3
$40
$60
4
$40
$80
5
$40
$110
6
$40
$150
7
$40
$200
8
$40
$280
5. Usingthe information in the table above, we can conclude that themarginal-cost curve intersects the average-variable-cost curve at_________ units of output and the average-total-cost curve at________ units of output.
a. 1; 1
b. 2; 3
c. 4; 4
d. 4; 5
e. 6; 7
Quantity of Output
Total Fixed Cost
Total Variable Cost
1
$40
$30
2
$40
$44
3
$40
$60
4
$40
$80
5
$40
$110
6
$40
$150
7
$40
$200
8
$40
$280
Explanation / Answer
Answer: a. 1; 1 because marginal cost at 1 is 70 and average totalcost at one is 70/1 = 70 therefore 1, 1 is your only answer with 1