Knowee
Questions
Features
Study Tools

If you know that total fixed cost is $200, total variable cost is $600, and total product is 4 units, then average total cost must beMultiple Choice$200.$250.$800.$3,200.

Question

If you know that total fixed cost is 200,totalvariablecostis200, total variable cost is 600, and total product is 4 units, then average total cost must beMultiple Choice200.200.250.800.800.3,200.

🧐 Not the exact question you are looking for?Go ask a question

Solution

The average total cost (ATC) is calculated by dividing the total cost (TC) by the quantity of output produced. The total cost is the sum of total fixed costs (TFC) and total variable costs (TVC).

Here's the step-by-step calculation:

  1. First, calculate the total cost (TC). The total cost is the sum of total fixed costs and total variable costs. In this case, TC = TFC + TVC = 200+200 + 600 = $800.

  2. Next, calculate the average total cost (ATC). The average total cost is the total cost divided by the quantity of output produced. In this case, ATC = TC / Quantity = 800/4=800 / 4 = 200.

So, the average total cost is $200.

This problem has been solved

Similar Questions

If you know that total fixed cost is $200, total variable cost is $600, and total product is 4 units, then average total cost must be

If you know that when a firm produces 10 units of output, total cost is $1,030 and average fixed cost is $10, then total variable cost isMultiple Choice$104.$930.$1,040.$1,130.

Fill in the Blank QuestionFill in the blank question.A company sells 800 units at $16 each, has variable costs of $12 per unit, and fixed costs of $1,200. Income is $.

A firm has fixed costs of $400, average total costs of $3 and average variable costs of $2.50. The output of the firm is _____________.

Based on a predicted level of production and sales of 22,000 units, a company anticipates total variable costs of $99,000, fixed costs of $30,000, and operating income of $36,000. Based on this information, the budgeted amount of fixed costs for 20,000 units would be:Group of answer choices$99,000.$90,000.$66,000.$30,000.$150,000.

1/3

Upgrade your grade with Knowee

Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.