Given the Following Information About the Cost Function for Bob's

Given the following information about the cost function for Bob's Beautiful Bowling Balls: $\begin{array}{c}\begin{array}{lc}\text { Out put } &\text { Total } \\&\text { Fixed } \\&\text { Costs }\\1 & 10 \\2 & \\3 & \\4 & \\5 & \\6 & \\7 & \\8 & \end{array}\begin{array}{c}\text { Total }&\text { Total } \\\text { Variable }&\text { Costs } \\ \text { Costs } &\\60 & \\& 100 \\& 120 \\& 128 \\& 180 \\& 252 \\& 316 \\& 436 \end{array}\begin{array}{cccc}\text { Average } & \text { Average } & \text { Average } & \text { IMargina } \\\text { Fixed } & \text { Variable } & \text { Total } & \text { Cost } \\\text { Cost } & \text { Cost } & \text { Cost } & \\\\\\\\\\\\\\\\\\\end{array}\end{array}$
Which of the following is true?

A) The average fixed cost of producing 3 units is $200.
B) The total cost of producing 5 units is $230.
C) The marginal cost of the 4^th unit is lower than for any other unit.
D) AVC falls through the first five units of output.
E) None of the above is true.

Correct Answer:

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