For 8 units of output, average fixed cost is $12.50 and average variable cost is $81.25. The total cost at this output level is ____________.
Question
For 8 units of output, average fixed cost is 81.25. The total cost at this output level is ____________.
Solution
To find the total cost at this output level, we need to add the average fixed cost and the average variable cost together and then multiply by the number of units.
Step 1: Add average fixed cost and average variable cost 81.25 (average variable cost) = $93.75
Step 2: Multiply the result by the number of units 750
So, the total cost at this output level is $750.
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