-Given the total cost function TC = 1,000 + 2Q,when output is 1,000 units,average total cost __________ and when output is 10,000 units,average total cost __________.
A) is $3;is $2.10
B) is $3,000;is $21,000
C) is $1.002;is 0.0102 cents
D) is $1,000;is $10,000
E) cannot be calculated;cannot be calculated

Question

-Given the total cost function TC = 1,000 + 2Q,when output is 1,000 units,average total cost __________ and when output is 10,000 units,average total cost __________.
A) is $3;is $2.10 
B) is $3,000;is $21,000 
C) is $1.002;is 0.0102 cents 
D) is $1,000;is $10,000 
E) cannot be calculated;cannot be calculated

Quizplus · Accepted Answer

The average total cost (ATC) is calculated as TC/Q. For 1,000 units, ATC = (1,000 + 2*1,000)/1,000 = $3. For 10,000 units, ATC = (1,000 + 2*10,000)/10,000 = $2.10.

-Given the Total Cost Function TC = 1,000 + 2Q,when