Marginal Cost of Production

The following questions refer to the following table which shows a firm's marginal cost of production.

-Refer to Marginal Cost of Production.Suppose the firm has $20 in fixed costs.Its total cost of producing 5 units of output is
A) $35.
B) $33.
C) $55.
D) $73.

Question

Marginal Cost of Production

The following questions refer to the following table which shows a firm's marginal cost of production.

-Refer to Marginal Cost of Production.Suppose the firm has $20 in fixed costs.Its total cost of producing 5 units of output is
A) $35. 
B) $33. 
C) $55. 
D) $73.

Quizplus · Accepted Answer

The total cost is the sum of fixed costs ($20) and variable costs. If the marginal cost of producing each unit is constant, the variable cost for 5 units is $35, making the total cost $55.