### Table DescriptionThis table displays cost-related data for different quantities of output. Below is how the data is organized:**Columns:**1. **Quantity** - Represents units of output (0 to 4).2. **Total Cost** - The overall cost for producing a given quantity.3. **Fixed Cost** - Costs that remain constant regardless of output level.4. **Variable Cost** - Costs that vary with the level of output.5. **Marginal Cost** - The cost of producing one additional unit of output.6. **Average Fixed Cost** - Fixed cost per unit of output.7. **Average Variable Cost** - Variable cost per unit of output.8. **Average Total Cost** - Total cost per unit of output.**Rows:**- **Quantity 0**: Total Cost is $24, with no data for other columns.- **Quantity 1**: Total Cost is $24, Marginal Cost for an additional unit is $16.- **Quantity 2**: Total Cost is $50.- **Quantity 3**: Total Cost is $108.- **Quantity 4**: Average Total Cost is noted as $40.### QuestionBased on Table 13-16, determine the total cost of producing 2 units of output.- a. $76- b. $50- c. $58- d. $74### Explanation- The question asks for the total cost when the quantity produced is 2 units.- From the table, when Quantity is 2, Total Cost is $50 (Option b).### Key Points- **Total Cost for 2 Units**: $50- The cost structure integrates various cost types that aid in understanding the financial implications of production at varied levels.

here we calculate the total cost of producing of 2 units of output as follow

Average Variable Marginal Average Variable Average Total Fixed Quantity Total Cost Fixed Cost Cost Cost Cost Cost Cost $24 $16 $50 3. $108 $40 4. Refer to Table 13-16. What is the total cost of producing 2 units of output? a. $76 b. $50 c. $58 d. $74

Average Variable Marginal Average Variable Average Total Fixed Quantity Total Cost Fixed Cost Cost Cost Cost Cost Cost $24 $16 $50 3. $108 $40 4. Refer to Table 13-16. What is the total cost of producing 2 units of output? a. $76 b. $50 c. $58 d. $74

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Concept explainers

Short-Run Costs and Long-Run Costs

Cost of short-run and the long-run is an economic term that describes the cost involved in the production of goods in a firm in the short as well as long period.

Question

### Table Description

This table displays cost-related data for different quantities of output. Below is how the data is organized:

**Columns:**

1. **Quantity** - Represents units of output (0 to 4).
2. **Total Cost** - The overall cost for producing a given quantity.
3. **Fixed Cost** - Costs that remain constant regardless of output level.
4. **Variable Cost** - Costs that vary with the level of output.
5. **Marginal Cost** - The cost of producing one additional unit of output.
6. **Average Fixed Cost** - Fixed cost per unit of output.
7. **Average Variable Cost** - Variable cost per unit of output.
8. **Average Total Cost** - Total cost per unit of output.

**Rows:**

- **Quantity 0**: Total Cost is $24, with no data for other columns.
- **Quantity 1**: Total Cost is $24, Marginal Cost for an additional unit is $16.
- **Quantity 2**: Total Cost is $50.
- **Quantity 3**: Total Cost is $108.
- **Quantity 4**: Average Total Cost is noted as $40.

### Question

Based on Table 13-16, determine the total cost of producing 2 units of output.
- a. $76
- b. $50
- c. $58
- d. $74

### Explanation

- The question asks for the total cost when the quantity produced is 2 units.
- From the table, when Quantity is 2, Total Cost is $50 (Option b).

### Key Points

- **Total Cost for 2 Units**: $50
- The cost structure integrates various cost types that aid in understanding the financial implications of production at varied levels.

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