Assume a firm is currently producing 500 units of output, total costs are $24,000, and average...
Question:
Assume a firm is currently producing 500 units of output, total costs are $24,000, and average fixed costs are $6. Based on this information we can conclude, with certainty, that the firm's:
A) average variable costs are $42.
B) total fixed costs are $21,000.
C) average total costs are $54.
D) marginal costs are $48.
Context header: Total Cost
Total cost is the sum of a company's expenditures on the production components needed to produce goods and services. Total cost at various production levels is the total fixed and variable costs. TVC + TFC = TC.
Answer and Explanation: 1
Become a Study.com member to unlock this answer! Create your account
View this answerThe correct answer is option A)
The average variable cost in economics is the variable cost per unit. The average variable cost is calculated by...
See full answer below.
Ask a question
Our experts can answer your tough homework and study questions.
Ask a question Ask a questionSearch Answers
Learn more about this topic:
Get access to this video and our entire Q&A library
Average Total Cost: Definition & Formula
from
Chapter 3 / Lesson 23
58K
Learn what is the average total cost. Learn its use, its formula, and how to apply it.
Related to this Question
- Assume a firm is currently producing 100 units of output, total fixed costs are $10,000, and average variable costs are $8. Based on this information we can conclude, with certainty, that the firm's: (a) marginal costs are $8. (b) total costs are $10,800.
- Assume a firm is currently producing 500 units of output, total costs are $24,000, and average fixed costs are $6. Based on this information we can conclude, with certainty, that the firm's: a) margi
- Assume that in the short run a firm is producing 100 units of output, has average total costs of $200, and average variable costs of $150. What are the firm's total fixed costs?
- Assume that in the short run a firm is producing 100 units of output, has average total costs of $200, and has a variable cost of $150. The firm's total fixed costs are: _____.
- Firm A is producing 40,000 units of output, incurring a total cost of $1,000,000 and total variable cost of $200,000. What is Firm A's average fixed cost?
- A firm is producing 100 units of output at a total cost of $400. The firm's average variable cost is $3 per unit. What is the firm's fixed cost? a. $150 b. $100 c. $300 d. $1
- A given perfectly competitive firm charges a price of $9.25 for its output. It faces average total cost of $10 per unit produced; its average fixed cost is $1. This information tells us that the firm
- A firm's average total costs are $60, its total fixed costs are $2000, and its output is 200 units. Its average variable costs are a. $50 b. $60 c. $70 d. $100
- If a firm produces 8 units of output with average fixed cost = $40 and average variable cost = $25, what is its total cost? a. $200. b. $1,000. c. $520. d. $320.
- Assume that in the short run a firm which is producing 100 units of output (Q) per-period has average total costs (ATC) of $5 and average fixed costs (AFC) of $2. It may be concluded that: A) TFC = $
- If a firm produces 10 units of output and incurs $30 in average variable cost and $35 in average total cost, total fixed cost is: a) $3 b) $35 c) $50 d) $300
- Suppose a firm's total cost is given by TC = 150 + 0.50Q + 1.5Q^2. What is the firm's average variable cost of producing 10 units of output? a. $15 b. $15.50 c. $17 d. $5.55
- If total costs are 50000 when 1000 units are produced and total costs are 50 100 when 1001 units are produced we can conclude that A average variable costs are 100 B average total costs are 100 C aver
- A firm producing 30 units of output has average total cost equal to $12 and average variable cost equal to $8. This firm s total fixed costs are therefore equal to A) $4 B) $120 C) $240 D) $360
- If a firm's fixed costs are $100, and its total costs are $200 to produce one unit and $310 to produce two units, then the average variable cost for each of the two units is: a) not possible to calculate b) $155 c) $110 d) $105 e) $100
- A firm's average total cost is $80, its fixed cost is $1000, and its output is 100 units. Its average variable cost A. is between $40 and $60. B. is more than $60. C. is less than $40. D. The cost cannot be determined without more information.
- A firm's total cost of producing 50 units of output is $10,000. At this output level, average fixed costs are equal to $50. It follows that the firm's average variable costs are equal to how much?
- If a firm is producing 100 units of output at an average variable cost of $5/unit and total fixed cost is $700 what is the average total cost?
- A firm's average variable cost is $60, its total fixed cost is $3,000, and its output is 600 units. Its average total cost is A. more than $64. B. between $58 and $62. C. between $62 and $64. D. less than $58.
- A firm produces 1,000 units of output at an average variable cost of production of 50 cents. The firm's total fixed costs equal $700. The total cost of producing 1,000 units of output equals A. $500. B. $800. C. $1,000. D. $1,200. E. $700.
- If a firm has $20,000 in total fixed costs, is producing 100 units, has an average total cost equal to $240, then what is its average variable cost of production?
- A firm operates in the short run with total fixed costs of $8,000.00 and total variable costs (TVC) related to the quantity of output as shown below. A. Calculate the average variable cost when output is 4 units. B. Calculate the average total cost when o
- A firm's average total cost is $80, its average variable cost is $75, and its output is 50 units. Its total fixed cost is A. less than $100. B. more than $300. C. between $200 and $300. D. between $100 and $200.
- A firm produces 400 units of output at a total cost of $1,200. If total variable costs are $1,000, a. average fixed cost is 50 cents, b. average variable cost is $2, c. average total cost is $2.50, d. average total cost is 50 cents.
- A firm's average variable cost is $90, its total fixed cost is $10,000, and its output is 1,000 units. Its total cost is A. more than $105,000. B. less than $85,000. C. between $95,000 and $105,000. D. between $85,000 and $95,000.
- A firm's average total cost is $100, its average variable cost is $90, and its total fixed cost is $1,000. Its output is A. between 70 and 120 units. B. less than 70 units. C. more than 170 units. D. between 120 and 170 units.
- If a firm produces 10 units, total cost = $100. When the firm increases its output to 15 units, total cost = $150. What is the firm's average variable cost?
- A firm is currently producing 10 units of output; marginal cost is $24 and average total cost is $6 at this level of output. The average total cost at 9 units of output is: a) $4 b) $5 c) $6 d) $8 e) none of the above
- A firm is producing 10 units of output: marginal cost is $24 and average total cost is $6 at this level of output. The average total cost at 9 units of output is: (blank).
- A firm is operating with a total variable cost of R_s is 500 when 5 units of the given output are produced and the total fixed cost is R_s is 200. What will be the average total cost of producing
- A firm's fixed costs for producing 0 units of output and its average total cost of producing different output levels are summarized in the tale below. Complete the table to find the fixed cost, variable cost, total cost, average fixed cost, average vari
- Assume the following information: The firm sets the price on the basis of average cost. The planned output is 100 units. The total cost function is TC = 1500 + 4Q + 0.8Q^2. The net profit margin is 500% on each unit of output. Determine/calculate the foll
- a. Suppose the firm can produce 5,000 units of output this year by combining its fixed capital with 100 units of labor and 450 units of raw materials. What are the total cost and average total cost of producing the 5,000 units of output?
- If the firm is producing at Q_1, the area 0BEQ_1 represents: a) total variable costs, b) total costs, c) total fixed costs, d) average variable costs.
- A firm, producing six units of output, has an average total cost of R200 and has to pay R300 to its fixed factors of production. The average variable cost is: 1. R50. 2. R150. 3. R200. 4. R300.
- Suppose a firm is collecting $1,250 in total revenues and the total costs of its variable factors of production are $1,000 at its current level of output. The firm has $500 in fixed costs. In the short run, one can predict that the firm will (blank) and i
- A firm's fixed costs for producing 0 units of output and its average total cost of producing different output levels are summarized in the table below. Complete the table to find the fixed cost, variable cost, total cost, average fixed cost, the average v
- With fixed costs of $400, a firm has average total costs of $3 and average variable costs of $2.50. Its output quantity must be: a. 200 units. b. 400 units c. 800 units. d. 1,600 units.
- Assume that a firm's production function is as follows: Q=10K^0.25L^0.25. If r=$15 and w=$20, what is the firm's average total cost if it uses 16 units of capital and 81 units of labor?
- At 50 units of output total cost is $5,000 and total variable cost is $4,000. Based on this information, which of the following is true? a. average total cost $100 b. total fixed cost is $1,000 c.
- If a firm has $40,000 in fixed costs, is producing 100 units, has average total cost equal to $2,400 then what is its average variable cost of production? (Hint: average total cost = average fixed cos
- A firm's fixed costs for producing 0 units of output and its average total cost of producing different output levels are summarized in the tale below. Complete the table to find the fixed cost, varia
- A firm's total cost is $1,000 if it produces one unit, $1,600 if it produces two units, and $2,000 if it produces three units of output. Draw up a table of total, average, and marginal costs for this
- An economist estimated that the cost function of a single-product firm is C(Q) = 50 + 25Q + 30Q^2 + 5Q^3. Determine the average total cost of producing 10 units of output.
- If a firm's total costs are $100 when 10 units of output are produced and $103 when 11 units of output are produced, the marginal cost of the 11th unit is: a) $1 b) $3 c) $5 d) $9.36 e) Impossible to determine with the information given
- A firm has cost function: C = 300 - 2Q + 3Q^2 The firm is producing 4 units of output. Calculate values tor these: a) total cost b) total variable cost c) total fixed cost d) avenge total cost
- Suppose the total cost of production in the short run is $500,000 when 2,000,000 units are produced. Then, average total cost (ATC) is A) 25 cents per unit and average fixed cost (AFC) is 15 cents per unit. B) $4 per unit, and average fixed cost (AFC) is
- If the output is 100 units, the average total cost is $60, and the total fixed cost is $4000, the average fixed cost is _____.
- Assume the XYZ Corporation is producing 20 units of output. It is selling this output in a perfectly competitive market at $10 per unit. Its total fixed costs are $100 and its average variable cost is $3 at 20 units of output. This corporation: A) should
- A firm's average total cost is $90, its fixed cost is $1000 and its output level (Q) is 100 units. Calculate the average variable cost (AVC) of the firm.
- A firm is currently producing 100 units of output. At this level of output produced: Its average total cost is 110(ATC=110) The price per unit of output is 120 MR=50 MC=20 a. Is this firm making prof
- If the average total cost is $280/unit, the quantity produced is 20 units, and the total fixed cost is $2500, what is the total variable cost for the output of 20 units?
- If the average total cost is $50 and the average fixed cost is $15 when output is 20 units, what is the firm's total variable cost at that level of output?
- The average total cost is $200 for a given output, the total fixed cost is 100 and the average variable cost is 140. What is the quantity being produced?
- Average total cost is $200 for a given output, total fixed cost is $100, and average variable cost is $140. What is the quantity being produced?
- Refer to the data below: Output Total cost 0 $30 1 39 2 47 3 54 4 60 5 67 6 75 Calculate the total variable cost of producing 5 units.
- Now assume the firm improves its production process so that it can produce 6,000 units of output this year by combining its fixed capital with 100 units of labor and 450 units of raw materials. What are the total cost and average total cost of producing t
- If average total cost exceed price (TR<TC) production results in no economic profit, a firm will record a loss when total costs are greater than total revenue. Fixed cost is considered sunk costs in a
- If total cost of producing 20 units of output is $1,000 and average variable cost is $35, what is the firm's avenge fixed cost at that level of output? a) $65 b) $50 c) $15 d) Can't be determined
- Assume the XYZ Corporation is producing 20 units of output. It is selling this output in a purely competitive market at $10 per unit. Its total fixed costs are $100 and its average variable cost is $3 at 20 units of output. What is this corporation's acco
- At 100 units of output, the total cost is $12,000, the total variable cost is $7,000, and the total fixed cost is $5,000. Average total cost is: a. $50. b. $70. c. $100. d. $120.
- At 100 units of output, total cost is $12,000, total variable cost is $7,000, and total fixed cost is $5,000. Average total cost is: a) $50 b) $70 c) $100 d) $120
- Suppose that each firm that operates in an industry has a total cost curve given by TC = 7,000 + 50Q. In this industry, the lowest average total cost of producing 1,000 units of output occurs when: f
- Suppose that each firm that operates in an industry has a total cost curve given by TC = 7,000 + 50Q. In this industry, the lowest average total cost of producing 1,000 units of output occurs when:
- An economist estimated that the cost function of a single-product firm is C(Q) = 50 + 25Q + 30Q^2 + 5Q^3. Determine the average fixed cost of producing 10 units of output.
- Firm X is producing 1,000 units, selling them at $15 each. Variable costs are $3 per unit, and the firm is making an accounting profit of $3,000. What are the firm's total variable costs?
- An economist estimated that the cost function of a single-product firm is C(Q) = 50 + 25Q + 30Q^2 + 5Q^3. Determine the average variable cost of producing 10 units of output.
- A firm has total cost of $1,000 at 0 output and $2,600 at 4 units of output. The total fixed cost is A. 0 B. 1,600 C. 1,000 D. 650
- A firm's fixed costs for 0 units of output and its average total cost of producing different output levels are summarized in the table below. Complete the table to find the fixed cost, variable cost,
- An economist estimated that the cost function of a single-product firm is C(Q) = 100 + 20Q + 15Q^2 + 10Q^3, where Q is the quantity. Calculate the average total cost of producing 10 units of output.
- Consider a firm that produces and sells homogenous units of output in the short run. The firm's marginal cost of production is the: i. change in average total cost that results from producing each ad
- The table given below shows the average total cost of production of a firm at different levels of the output. If the total fixed cost is $3, what is the total variable cost of producing 5 units? a. $8
- When output is 200 units, the firm's total fixed cost is $1,000. What will this firm's total fixed cost be if output doubles to 400 units? a. $1,000 b. $500 c. $250 d. Cannot tell from the information provided.
- A firm is deciding whether to produce or shut down in the short run. Its total costs are $15,000 of which $5,000 are the total fixed costs of production. The firm should produce in the short run as long as its total revenues are at least: a. $0 b. $15,000
- A firm's total cost is $10,957 when it produces a quantity of 50 units. Rounded to the nearest dollar, what is the firm's average total cost at this quantity? a. $413 b. $250 c. $219 d. $187 e. none of the above
- A firm's fixed costs for 0 units of output and its average total cost of producing different output levels are summarized in the table below. Complete the table to find the Fixed Cost (FC), Variable C
- Suppose the price of each unit of labor is $25 and the price of each unit of capital is $100. The firm's total costs are $10,000 and it is producing 30 units of output. a. In the long run, if the fir
- Total Output Total Cost $100 196 212 310 430 570 In the table above, when total output is 6 units, the average variable cost is $1,860 AVC cannot be determined from the information given $35 $51
- If average fixed costs are 9.7 and average variable costs are 9.6 at 3 units of output, what are average total costs? In other words, what are average total costs per unit at 3 units of output?
- A firm is deciding whether to produce or shut down in the short run. Its total costs are $15,000 of which $5,000 are the total fixed costs of production. This firm should produce in the short run as long as its total revenue is at least: A. $0 B. $15,000
- A firm is currently producing 40 units of output. At this level of output produced, its average total cost is 130 (ATC = 130), the price per unit of output is 150, MR = 30, and MC = 50. A. Is this fi
- Your firm has a price of $4.00, An average total cost of $6.00, and an average variable cost of $3.00. In the short run you should A. shut down or B. Operate because A. Average total cost B. Variable cost or C.Price exceeds A.Average variable cost or B. P
- Answer the question based on the following cost data: Output Total cost($) 0 24 1 33 2 41 3 48 4 54 5 61 6 69 Refer to the above data. 1. What is the total variable cost of producing 5 units: A. $61. B. $48. C. $37. D. $24 2. What is the average tota
- Based on data from accounting, assume the total variable cost is $600,000 and the average variable cost is 10 + 0.02Q, which Q is the output (in units). Also, assume that the average variable cost is
- Consider the following table. What is the average fixed cost of producing 5 units of output? | Quantity of Output | Fixed Cost | Variable Cost | 0 | $20| $0 | 1 | $20 | $10 | 2 | $20 | $40 | 3 | $20 | $80 | 4 | $20 | $130 | 5 | $20 | $200 | 6 | $20
- Suppose a firm produces an output measured in units Q. The cost of producing Q units is given by the cost function C(Q) = aQ^2 + bQ + c, where you can assume a 0,b 0,c 0. In Economics we also think about cost per unit (average cost) given by: AC(Q) = C(
- An economist estimated that the cost function of a single-product firm is C(Q) = 50 + 25Q + 30Q^2 + 5Q^3. Determine the total cost of producing 10 units of output.
- An economist estimated that the cost function of single-product firm is C(Q) = 100 + 20Q + 15Q^2 + 10Q^3, where Q is the quantity of output. Calculate the average fixed cost of producing 10 units of output.
- A firm has a production function defined as y = 40L^1 /10K^7 /10. The firm faces costs of $10 wages, and $100 rental rate of capital. Find the cost function, and average total cost, average variable c
- An economist estimated that the cost function of a single-product firm is C(Q) = 100 + 20Q + 15Q^2 + 10Q^3, where Q is the quantity. Calculate the average variable cost of producing 10 units of output.
- A firm has a fixed cost of $700 in its first year of operation. When the firm produces 99 units of output, its total costs are $4,000. The marginal cost of producing the 100th unit of output is $200. What is the total cost of producing 100 units?
- A firm will shut down in the short run if, for all positive levels of output, _____. a. its loss exceeds its fixed costs b. its total revenue is less than its variable costs c. the price of its product is less than its average variable cost d. All of the
- A firm that produces handbags is incurring total costs of production in the short run of $10,800 per day. The firm's average variable cost equals $20 per unit and its average fixed cost equals $40 per unit. A. How many units is the firm producing per day?
- Suppose that your factory faces a total product and average variable cost curve. Total Product Variable Costs 1 $18 2 30 3 39 4 45 5 54 6 69 7 90 8 120 If labor costs $3 per unit, and you have fix
- If a monopolistically competitive firm is producing 7,000 units of output, and at this output level, the price is $12, and the average total cost is $10, the firm profit/loss is equal to what, and it is or is not possible for the firm to be in long run eq
- Suppose a perfectly competitive firm in the short-run is currently producing an output level of 50,000 units, charging a price per unit of $4. The firm incurs variable costs of $280,000 in producing this level of output. It also has fixed costs of $60,000
- The cost per unit of variable cost of output is regarded as A. Average variable cost B. Fixed cost C. Total cost D. Variable cost
- An economist estimated that the cost function of single-product firm is C(Q) = 100 + 20Q + 15Q^2 + 10Q^3, where Q is the quantity of output. Calculate the total cost of producing 10 units of output.
- A firm has this cost function: [{MathJax fullWidth=?false? C=1000 + 6Q }]. The firm is currently producing 9 units of its product. Calculating these: A) average total cost B) Total fixed cost
- If fixed costs are $46 and variable costs are $35 at 3 units of output, what is the average total cost? In other words, what are the total costs per unit at 3 units of output?
Explore our homework questions and answers library
Browse
by subject