Refer to Table 21.5: Table 21.5
$\begin{array} { | c | c | c | c | c | c | }
\hline \mathrm { Q } & \mathrm { TFC } & \mathrm { TVC } & \mathrm { TC } & \text { AVC } & \text { MC } \
\hline 0 & & & 15 & - & - \
\hline 1 & & & 23 & & \
\hline 2 & & & & & 4 \
\hline 3 & & 15 & & & \
\hline
\end{array}$ The total variable cost of 2 units of output in Table 21.5 is
A)$15.
B)$27.
C)$8.
D)$12.

Question

Refer to Table 21.5: Table 21.5
$\begin{array} { | c | c | c | c | c | c | } 
\hline \mathrm { Q } & \mathrm { TFC } & \mathrm { TVC } & \mathrm { TC } & \text { AVC } & \text { MC } \
\hline 0 & & & 15 & - & - \
\hline 1 & & & 23 & & \
\hline 2 & & & & & 4 \
\hline 3 & & 15 & & & \
\hline
\end{array}$ The total variable cost of 2 units of output in Table 21.5 is
A)$15.
B)$27.
C)$8.
D)$12.

Quizplus · Accepted Answer

The total cost (TC) at 0 units of output is $15, which represents the total fixed cost (TFC) since no output means no variable costs. At 1 unit of output, TC is $23. The increase in TC from 0 to 1 unit ($23 - $15 = $8) represents the total variable cost (TVC) for the first unit. At 2 units, the marginal cost (MC) is $4, indicating the cost to produce the second unit. Therefore, the TVC for 2 units is the sum of the TVC for the first unit ($8) and the MC for the second unit ($4), totaling $12.

Refer to Table 21 The Total Variable Cost of 2 Units of Output in |