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Questions › JNU › JNU SSS 2011 › Q77
1 mark, −0.25Microeconomics › Costs of production › Deriving cost functions and cost curvesHardabout 2 min

JNU SSS 2011 Question 77: Costs of production

The following table shows the marginal cost of producing nnnth (n=1,2,⋯ ,10n = 1, 2, \cdots, 10n=1,2,⋯,10) unit of output by a competitive firm :

OutputMarginal Cost
11·0
21·3
31·7
42·3
53·0
63·9
75·0
86·5
98·2
1010·0
It is also given that the total cost of producing 3 units of output is 7.

The average cost of producing 9 units of output (correct up to two decimal places) is

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Plain-text version

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 cost of producing 9 units of output (correct up to two decimal places) is (A) 3·66 (B) 3·99 (C) 0·91 (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 cost of producing 9 units of output (correct up to two decimal places) is

Costs of production has come up 83 times in 7 exams since 2006.

What this question tests

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.

TestStop has 20 past-paper questions on this subtopic; the nearest in year are below.

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