Given the following information about the cost function for Bob's Beautiful Bowling Balls:
Ou...
Business, 24.04.2020 20:32 smokemicpot
Given the following information about the cost function for Bob's Beautiful Bowling Balls:
Output Total Total Total Average Average Average Marginal
Fixed Variable Costs Fixed Variable Total Cost
Costs Costs Cost Cost Cost
1 10 60
2 100
3 120
4 128
5 180
6 252
7 316
8 436
Which of the following is true?
1. The total cost of producing 5 units is $230.
2. AVC falls through the first five units of output.
3. The marginal cost of the 4th unit is lower than for any other unit.
4. The average fixed cost of producing 3 units is $200.
5. None of the above is true.
Answers: 2
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