Use the table below to answer the following question.

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Use the table below to answer the following question. Units of Output Total Variable Cost (dollars) Total Fixed Cost (dollars

Units of Output Total Variable Cost (dollars) Total Fixed Cost (dollars) 150 150 150 150 70 100 What is the marginal cost of

Use the table below to answer the following question. Units of Output Total Variable Cost (dollars) Total Fixed Cost (dollars

Units of Output Total Variable Cost (dollars) Total Fixed Cost (dollars) 150 150 150 150 WN 48 100 What is the average total

Use the table below to answer the following question.

What is the marginal cost of producing the third unit of output?

What is the average variable cost at an output level of three units?

What is the average total cost at an output level of three units?

business economics

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Answer 1

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Answer #1

Answer:

1]

MC = TCn - TCn-1 / Qn - Qn-1

Output	TFC	TVC	TC = TFC+TVC
1	150	25	175
2	150	48	198
3	150	70	220
4	150	100	250

Marginal cost of 3rd unit of output = 220 - 198 / 3-2

MC = 22

so, Marginal cost of 3rd unit of output is 22.

Hence option A] $22 is correct

2]

Average variable cost at an output level of three units is

Average variable cost = Total Variable Cost / No. of output

= 70 / 3 = 23.33

Hence option B]$ 23.33 is correct option

3]

Average Total cost at an output level of three units is

Average Total cost = Total Cost / No. of output

= 220 / 3 = $73.33

Hence option C] $73.33 is correct option

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Answer 2

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