At its current output level, Pretty Flowers Florist has average fixed costs equal to $5.40 and average variable costs equal to $3.20. What is Pretty Flowers Florist's average total cost at their current output level?

Question

Quizplus · Accepted Answer

Average total cost is equal to average fixed cost plus average variable cost, so in this case, it would be $5.40 + $3.20 = $8.60. Therefore, the best choice is B.

At Its Current Output Level, Pretty Flowers Florist Has Average