Answer the next question(s) on the basis of the following cost data: |Output|Total Cost $24 ...
Question:
Answer the next question(s) on the basis of the following cost data:
| Output | Total Cost $24 |
| 0 | $24 |
| 1 | 33 |
| 2 | 41 |
| 3 | 48 |
| 4 | 54 |
| 5 | 61 |
| 6 | 69 |
Refer to the above data. The average total cost of producing 3 units of output is:
A. $14
B. $12
C. $13.50.
D. $16.
Marginal cost is the
a. rate of change in total fixed cost that results from producing one more unit of output.
b. change in total cost that results from producing one more unit of output.
c. change in average variable cost that results from producing one more unit of output.
d. change in average total cost that results from producing one more unit of output.
Average fixed cost
The total fixed cost for producing one unit of output is the average fixed cost. The average fixed cost curve is a rectangular hyperbola. It is also the difference between average cost and average variable cost.
Answer and Explanation: 1
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View this answer- The answer is option D. $16.
. {eq}Average\,total\,cost=\frac{Total\,Cost}{Output} \\ => Average\,total\,cost=\frac{48}{3}=16 {/eq}
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Average Total Cost: Definition & Formula
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Chapter 3 / Lesson 23
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Learn what is the average total cost. Learn its use, its formula, and how to apply it.
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