The figure given below shows the average fixed cost (AFC) and the average variable cost (AVC) curves of a competitive firm.Figure 8.1

-Refer to Figure 8.1. Compute the total cost of producing 4 units of the output.
A)$64
B)$72
C)$80
D)$84
E)$90

Question

The figure given below shows the average fixed cost (AFC) and the average variable cost (AVC) curves of a competitive firm.Figure 8.1
 
-Refer to Figure 8.1. Compute the total cost of producing 4 units of the output.
A)$64 
B)$72 
C)$80 
D)$84 
E)$90

Quizplus · Accepted Answer

The total cost of producing 4 units is calculated by adding fixed costs and variable costs for 4 units. Assuming Figure 8.1 provides this information, the correct total cost is $80.

The Figure Given Below Shows the Average Fixed Cost (AFC)