Refer to Figure 8.4. If two microwave ovens are produced, Micro Oven's total variable costs are

A) $150.
B) $300.
C) $450.
D) indeterminate from this information.

Question

Refer to Figure 8.4. If two microwave ovens are produced, Micro Oven's total variable costs areA)  $150.B)  $300.C)  $450.D)  indeterminate from this information.

kyshaun lewis · Accepted Answer

Final Answer : A, Explanation :  Total Variable Costs (TVC) increase with each unit produced. If producing one microwave oven costs $150 in variable costs, producing two would double that amount to $300. However, the question asks for the total variable costs when two units are produced, which is directly given as $150 in the options, indicating a possible misunderstanding in the question's phrasing or options. The correct interpretation based on standard economic principles and the options provided would be that $150 is the cost for one unit, making the question's phrasing or provided options potentially misleading.

Refer to Figure 8.4. If two microwave ovens are produced, Micro Oven's total variable costs are

A) $150.
B) $300.
C) $450.
D) indeterminate from this information.

Definitions

Learning Objectives

Learning Objectives

Related questions