Question 4 Use the following table for the (i),(ii) and (iii) questions. Quantity Total fixed cost Total variable cost 0 $800 $0 1 $800 $50 2 $800 $100 3 $800 $150 4 $800 $200 (i) What is the marginal cost of the third unit? A: $0 B: $50 C: $150 D: $250 (ii) What is the average total cost at the quantity of 4? A: $100 B: $150 C: $200 D: $250 (iii) From the information in the table above, is the marginal product diminishing? A: Yes, because the total cost is increasing as the quantity increases. B: Yes, because the total variable cost is increasing as the quantity increases. C: No, because the marginal cost is not increasing as quantity increases. D: No, because the total fixed cost is not increasing as quantity increases.
Question 4
Use the following table for the (i),(ii) and (iii) questions.
|
Quantity |
Total fixed cost |
Total variable cost |
|
0 |
$800 |
$0 |
|
1 |
$800 |
$50 |
|
2 |
$800 |
$100 |
|
3 |
$800 |
$150 |
|
4 |
$800 |
$200 |
(i) What is the marginal cost of the third unit?
A: $0
B: $50
C: $150
D: $250
(ii) What is the
A: $100
B: $150
C: $200
D: $250
(iii) From the information in the table above, is the marginal product diminishing?
A: Yes, because the total cost is increasing as the quantity increases.
B: Yes, because the total variable cost is increasing as the quantity increases.
C: No, because the marginal cost is not increasing as quantity increases.
D: No, because the total fixed cost is not increasing as quantity increases.
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