Asked by
Clarissa Marie
on Oct 08, 2024Verified
Answer the question on the basis of the following cost data: Output‾12345678AverageFixedCost ‾$50.0025.0016.6712.5010.008.377.146.25AverageVariableCost ‾$100.0080.0066.6765.0068.0073.3380.0087.50\begin{array}{c}\begin{array}{c}\\\\\underline{\text {Output}}\\1 \\2 \\3 \\4 \\5 \\6 \\7 \\8\end{array}\begin{array}{c}\text {Average}\\\text {Fixed}\\\underline{\text {Cost }}\\\$ 50.00 \\25.00 \\16.67 \\12.50 \\10.00 \\8.37 \\7.14 \\6.25\end{array}\begin{array}{c}\text {Average}\\\text {Variable}\\\underline{\text {Cost }}\\ \$ 100.00 \\80.00 \\66.67 \\65.00 \\68.00 \\73.33 \\80.00 \\87.50\end{array}\end{array}Output12345678AverageFixedCost $50.0025.0016.6712.5010.008.377.146.25AverageVariableCost $100.0080.0066.6765.0068.0073.3380.0087.50
Refer to the data.The average total cost of five units of output is:
A) $69.
B) $78.
C) $3.
D) $10.
Average Total Cost
The sum of all production expenses, both fixed and variable, divided by the total quantity of units manufactured.
Average Fixed Cost
The fixed cost per unit produced, calculated by dividing total fixed costs by the number of units produced.
Average Variable Cost
The variable cost per unit, calculated by dividing total variable costs by the quantity of units produced.
- Evaluate precise cost figures (MC, ATC, AVC, AFC) based on available information.
Verified Answer
MS
Learning Objectives
- Evaluate precise cost figures (MC, ATC, AVC, AFC) based on available information.