The table given below shows the average total cost of production of a firm at different levels of the output.Table 8.5

-In Table 8.5, if the total fixed cost is $3, what is the total variable cost of producing 5 units?
A)$38
B)$32
C)$3
D)$8
E)Cannot be determined from the information given.

Question

The table given below shows the average total cost of production of a firm at different levels of the output.Table 8.5
 
-In Table 8.5, if the total fixed cost is $3, what is the total variable cost of producing 5 units?
A)$38 
B)$32 
C)$3 
D)$8 
E)Cannot be determined from the information given.

Quizplus · Accepted Answer

To find the total variable cost, we need to subtract the total fixed cost from the total cost of producing 5 units.
Total variable cost = Total cost - Total fixed cost
From the table, we can see that the total cost of producing 5 units is $35.
Therefore, total variable cost = $35 - $3 = $32. 
Hence, the correct answer is option B.

The Table Given Below Shows the Average Total Cost of Production