Use the following data to answer questions #5 - 6:
Quantity of Output Total Fixed Cost Total Variable Cost
1 $50 $40
2 $50 $68
3 $50 $90
4 $50 $100
5 $50 $150
6 $50 $240
7 $50 $315
8 $50 $400
5. Using the information in the table above, the average total cost of producing five units of output is
[A] $40
[B] $50
[C] $150
[D] $200
6. Using the information in the table above, the marginal cost of the seventh unit of output is _____
[A] $50
[B] $75
[C] $240
[D] $315
7. The increased interest in historical tourism has made the significant investment in fixed costs of
historic castles and homes profitable in which of these countries?
[A] USA.
[B] Iceland.
[C] Israel.
[D] Ireland.
8. The perfectly competitive coffee bean market makes life very complicated for farmers in
[A] Canada.
[B] Egypt.
[C] England.
[D] Colombia.
