Table 13-7
The Flying Elvis Copter Rides
| Quantity | Total Cost |
Fixed Cost |
Variable Cost |
Marginal Cost |
Average Fixed Cost |
Average Variable Cost |
Average Total Cost |
| 0 | $50 | $50 | $0 | -- | -- | -- | -- |
| 1 | $150 | A | B | C | D | E | F |
| 2 | G | H | I | $120 | J | K | L |
| 3 | M | N | O | P | Q | $120 | R |
Refer to Table 13-7. What is the value of G?
Group of answer choices
$120
$220
$270
$30
Answer
the total cost of n units =total cost of n-1 units +marginal cost
of n th unit
TC(n)=TC(n-1)+MC(n)
TC(2)=150+120=$270
the total cost is called G which is $270
Option 3
| Output | TC | FC | VC | MC | AFC | AVC | ATC |
| 0 | 50 | 50 | - | - | - | - | - |
| 1 | 150 | 50 | 100 | 100 | 50 | 100 | 150 |
| 2 | 270 | 50 | 220 | 120 | 25 | 110 | 135 |
| 3 | 410 | 50 | 360 | 140 | 16.66 | 120 | 136.66 |
Value of E is $100 Option A
Formula used
TC = TVC+ TFC
AVC = TVC/Q
AFC= FC/Q
AC= TC/Q
MC= TC(q2) - TC(q1)
Table 13-7 The Flying Elvis Copter Rides Quantity Total Cost Fixed Cost Variable Cost Marginal Cost Average Fixed Cos...