When output is 50, fixed costs are $1,000, and variable costs are $2,000, what is the average total cost?
A) $20
B) $40
C) $60
D) $80

Name: When output is 50, fixed costs are $1,000, and variable costs are $2,000, what is the average total cost? A) $20 B) $40 C) $60 D) $80
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Question

Quizplus · Accepted Answer

The average total cost is calculated by adding fixed costs and variable costs, then dividing by the output. So, ($1,000 + $2,000) / 50 = $60.

When Output Is 50, Fixed Costs Are $1,000, and Variable