In order to produce 100 oatmeal cookies, GoodieCookieCo incurs an average total cost of $0.25 per cookie. The company's marginal cost is constant at $0.10 for all oatmeal cookies produced. The total cost to produce 50 oatmeal cookies is

Question

Quizplus · Accepted Answer

The marginal cost is constant at $0.10 per cookie, so producing 50 cookies costs 50 x $0.10 = $5. Since the average total cost for 100 cookies is $0.25, the fixed cost is $25 - $10 = $15. Therefore, the total cost for 50 cookies is $5 + $15 = $20.

In Order to Produce 100 Oatmeal Cookies, GoodieCookieCo Incurs an Average