The following table shows the marginal cost of producing th () unit of output by a competitive firm :
| Output | Marginal Cost |
|---|---|
| 1 | 1·0 |
| 2 | 1·3 |
| 3 | 1·7 |
| 4 | 2·3 |
| 5 | 3·0 |
| 6 | 3·9 |
| 7 | 5·0 |
| 8 | 6·5 |
| 9 | 8·2 |
| 10 | 10·0 |
| It is also given that the total cost of producing 3 units of output is 7. |
The average variable cost of producing 7 units of output (correct up to two decimal places) is
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The following table shows the marginal cost of producing n th (n = 1, 2, ⋯, 10) unit of output by a competitive firm: | Output | Marginal Cost | 1 | 1·0 | 2 | 1·3 | 3 | 1·7 | 4 | 2·3 | 5 | 3·0 | 6 | 3·9 | 7 | 5·0 | 8 | 6·5 | 9 | 8·2 | 10 | 10·0 | It is also given that the total cost of producing 3 units of output is 7. The average variable cost of producing 7 units of output (correct up to two decimal places) is (A) 2·60 (B) 0·71 (C) 3·03 (D) None of the above
Also written as: The following table shows the marginal cost of producing n th (n = 1, 2,..., 10) unit of output by a competitive firm: | Output | Marginal Cost | 1 | 1·0 | 2 | 1·3 | 3 | 1·7 | 4 | 2·3 | 5 | 3·0 | 6 | 3·9 | 7 | 5·0 | 8 | 6·5 | 9 | 8·2 | 10 | 10·0 | It is also given that the total cost of producing 3 units of output is 7. The average variable cost of producing 7 units of output (correct up to two decimal places) is
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This question is on Deriving cost functions and cost curves, part of Costs of production in Microeconomics.
Working out cost curves from a cost function, a production function or a marginal cost schedule.
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Question from the JNU SSS 2011 paper. Solutions are TestStop's own. Not affiliated with or endorsed by any examination authority.