The table below shows output, marginal cost, and average variable cost for the production of pairs of shoes. All costs are in dollars. $$\begin{array}{l}
\begin{array} { | l | l | l | }
\hline \text { Output } & \begin{array} { l }
\text { Marginal } \
\text { Cost }
\end{array} & \begin{array} { l }
\text { Average } \
\text { Variable Cost }
\end{array} \
\hline 50 & 60 & 140 \
\hline 70 & 45 & 115 \
\hline 90 & 35 & 95 \
\hline 110 & 30 & 80 \
\hline 130 & 35 & 65 \
\hline 150 & 60 & 60 \
\hline 170 & 105 & 65 \
\hline 190 & 180 & 75 \
\hline 210 & 230 & 90 \
\hline 230 & 290 & 110 \
\hline
\end{array}\
\text { TABLE 7- } 6
\end{array}$$
-Refer to Table 7- 6. If the firm produces 130 pairs of shoes, and the fixed cost is $550, then the firm's total cost is
A) $8000.
B) $7000.
C) $12 000.
D) $9000.
E) $10 000.

Question

The table below shows output, marginal cost, and average variable cost for the production of pairs of shoes. All costs are in dollars. $$\begin{array}{l}
\begin{array} { | l | l | l | } 
\hline \text { Output } & \begin{array} { l } 
\text { Marginal } \
\text { Cost }
\end{array} & \begin{array} { l } 
\text { Average } \
\text { Variable Cost }
\end{array} \
\hline 50 & 60 & 140 \
\hline 70 & 45 & 115 \
\hline 90 & 35 & 95 \
\hline 110 & 30 & 80 \
\hline 130 & 35 & 65 \
\hline 150 & 60 & 60 \
\hline 170 & 105 & 65 \
\hline 190 & 180 & 75 \
\hline 210 & 230 & 90 \
\hline 230 & 290 & 110 \
\hline
\end{array}\
\text { TABLE 7- } 6
\end{array}$$
-Refer to Table 7- 6. If the firm produces 130 pairs of shoes, and the fixed cost is $550, then the firm's total cost is
A) $8000.
B) $7000.
C) $12 000.
D) $9000.
E) $10 000.

Quizplus · Accepted Answer

The total cost is the sum of total variable cost and fixed cost. At 130 pairs, the average variable cost is $65, so total variable cost is 130 * 65 = $8450. Adding the fixed cost of $550 gives a total cost of $9000.

The Table Below Shows Output, Marginal Cost, and Average Variable