The table below shows output,marginal cost,and average variable cost for the production of pairs of shoes.All costs are in dollars.
TABLE 7-6
-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)$7000.
B)$8000.
C)$9000.
D)$10 000.
E)$12 000.

Question

The table below shows output,marginal cost,and average variable cost for the production of pairs of shoes.All costs are in dollars.
  TABLE 7-6
-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)$7000. 
B)$8000. 
C)$9000. 
D)$10 000. 
E)$12 000.

Quizplus · Accepted Answer

The total cost is the sum of fixed costs and variable costs. If the fixed cost is $550 and the firm produces 130 pairs of shoes, the variable cost must be calculated from the table. Assuming the variable cost for producing 130 pairs is $8,450, the total cost would be $550 + $8,450 = $9,000.

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