Consider the following data: equilibrium price = $9,quantity of output produced = 1,000 units,average total cost = $7,and average variable cost $5.Given this,total revenue is __________,total cost is __________,and total fixed cost is __________.

Question

Quizplus · Accepted Answer

Total revenue is calculated as equilibrium price multiplied by quantity, which is $9 * 1,000 = $9,000. Total cost is average total cost multiplied by quantity, which is $7 * 1,000 = $7,000. Total fixed cost is total cost minus total variable cost (average variable cost multiplied by quantity), which is $7,000 - ($5 * 1,000) = $2,000.

Consider the Following Data: Equilibrium Price = $9,quantity of Output