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WAEC Economics 2018 Question 20

Question 20

Theory of Costs and Revenue

Use the table below to answer the question.
Quantity | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7
Total Cost | 20 | 25 | 28 | 30 | 38 | 55 | 92 | 135
At output level 5, the total variable cost is

  1. A.$5.00
  2. B.$20.00
  3. C.$55.00
  4. D.$35.00
Show the answer and explanation

Answer: D ($35.00)

Explanation

TVC = TC − TFC = 55 − 20 = $35.