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Say a firm has $100 in fixed costs and average variable costs increase by $5 for each unit, so that the cost of 1 is $25, the cost of 2 is $30, the cost of 3 is $35, and so on.
a. Show VC, TC, MC, AFC, AVC, and ATC in a table.
Instructions: Round your answers to the nearest whole number.
Units (Q)
FC ($)
VC ($)
TC ($)
MC ($)
AFC ($)
AVC ($)
ATC ($)
0
100

Respuesta :

For each additional unit in a table, the average variable costs increase by $5, from $25 for item 1 to $30 for device 2, $35 for entity 3, and so on. As a result, option c is the best. MC

What word best encapsulates growth?

There are several frequently used synonyms for increase, including increas, enlarge, as multiply. All of these verbs denote "to make by getting greater," but when in the passive, "growing" signifies progressive growth in area, number, or intensity. However, when used in the active, it could also imply straightforward addition as opposed to gradual expansion.

Briefing

The marginal cost, as distinct to the total cost, is the extra expense incurred in producing one more unit of the product.

It might be= Change in the total cost ÷ change in output

So as per the given options, the option 3 is correct

hence, the right option is c. MC

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