Carolyn knows average total cost and average variable cost for a given level of output. Which of the following costs can she not determine given this information?
A) Total cost
B) Average fixed cost
C) Fixed cost
D) Variable cost
E) Carolyn can determine all of the above costs given the information provided.

Question

Quizplus · Accepted Answer

Carolyn can determine all the mentioned costs because average total cost minus average variable cost gives average fixed cost. From average fixed cost, total fixed cost can be calculated by multiplying with the level of output. Total cost is the sum of total fixed and variable costs, and variable cost can be derived from average variable cost by multiplying it with the level of output.

Carolyn Knows Average Total Cost and Average Variable Cost for a Given