Question

Answer the question based on the following cost data. If the total cost is $0 when the output is 48, what is the total cost when the output is 58?

1) $68
2) $78
3) $88
4) $98

Answer 1

The total cost when the output is 58 would be $4800.

Step-by-step explanation:

To find the total cost when the output is 58, we can use the given information. From the table, we see that as the output increases from 1 to 2 units, the total cost increases from $1500 to $1800. So, the increase in total cost for each additional unit is $300 ($1800 - $1500). Since the increase in output from 48 to 58 is 10 units, the total cost would increase by 10 times the increase in cost per unit, which is $300. Therefore, the total cost when the output is 58 would be $1800 + $3000 = $4800.