Total cost of production, C(Q) ($)350,000240,000140,00080,000FA20Quantity of cars, QB40The diagram above represents the total production cost of a carmanufacturer. Which of the following statements correctly describes thecost of production?Select one:a. The marginal cost decreases as total output increases.b. Production of cars requires $80,000 as fixed costs.c.The average cost increases and then decreases as total outputincreases.O d. The average cost when producing 40 cars is $140,000.e. The average cost when producing 60 cars is $4,000.D60

The diagram above represents the total production cost of a car manufacturer. Which of the following statements correctly describes the cost of production? Select one: O a. a. The marginal cost decreases as total output increases. O b. Production of cars requires $80,000 as fixed costs. O c. The average cost increases and then decreases as total output increases. d. The average cost when producing 40 cars is $140,000.

The diagram above represents the total production cost of a car manufacturer. Which of the following statements correctly describes the cost of production? Select one: O a. a. The marginal cost decreases as total output increases. O b. Production of cars requires $80,000 as fixed costs. O c. The average cost increases and then decreases as total output increases. d. The average cost when producing 40 cars is $140,000.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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