Consider the following data: equilibrium price = $15, quantity of output produced = 10,000 units, average total cost = $12, and average variable cost $7. Given this data, total revenue is __________, total cost is __________, and total fixed cost is __________.

Question

Quizplus · Accepted Answer

Total revenue is calculated as the equilibrium price multiplied by the quantity of output produced, which is $15 * 10,000 = $150,000. Total cost is the average total cost multiplied by the quantity of output, which is $12 * 10,000 = $120,000. Total fixed cost can be found by subtracting total variable cost from total cost. Total variable cost is the average variable cost multiplied by the quantity of output, which is $7 * 10,000 = $70,000. Therefore, total fixed cost is $120,000 - $70,000 = $50,000.

Consider the Following Data: Equilibrium Price = $15, Quantity of Output