The table below shows output,marginal cost,and average variable cost for the production of pairs of shoes.All costs are in dollars. $$\begin{array} { | c | c | c | }
\hline \text { Output } & \begin{array} { c }
\text { Marginal } \
\text { Cost }
\end{array} & \begin{array} { c }
\text { Average } \
\text { Variable Cost }
\end{array} \
\hline 50 & 60 & 140 \
\hline 70 & 45 & 115 \
\hline 90 & 35 & 95 \
\hline 110 & 30 & 80 \
\hline 130 & 35 & 65 \
\hline 150 & 60 & 60 \
\hline 170 & 105 & 65 \
\hline 190 & 180 & 75 \
\hline 210 & 230 & 90 \
\hline 230 & 290 & 110 \
\hline
\end{array}$$ TABLE 7- 6
-Refer to Table 7- 6.Suppose there are no fixed costs.The firm reaches it's capacity level of output when its output is equal to units.
A)150
B)50
C)210
D)110
E)190

Question

The table below shows output,marginal cost,and average variable cost for the production of pairs of shoes.All costs are in dollars. $$\begin{array} { | c | c | c | } 
\hline \text { Output } & \begin{array} { c } 
\text { Marginal } \
\text { Cost }
\end{array} & \begin{array} { c } 
\text { Average } \
\text { Variable Cost }
\end{array} \
\hline 50 & 60 & 140 \
\hline 70 & 45 & 115 \
\hline 90 & 35 & 95 \
\hline 110 & 30 & 80 \
\hline 130 & 35 & 65 \
\hline 150 & 60 & 60 \
\hline 170 & 105 & 65 \
\hline 190 & 180 & 75 \
\hline 210 & 230 & 90 \
\hline 230 & 290 & 110 \
\hline
\end{array}$$ TABLE 7- 6
-Refer to Table 7- 6.Suppose there are no fixed costs.The firm reaches it's capacity level of output when its output is equal to units.
A)150
B)50
C)210
D)110
E)190

Quizplus · Accepted Answer

The firm reaches its capacity level of output when marginal cost starts to increase after reaching its minimum. This occurs at an output of 150 units, where marginal cost is at its lowest before increasing.

The Table Below Shows Output,marginal Cost,and Average Variable Cost for the Production