Tankao makes Bluetooth sets for mobile devices.When 50 Bluetooth sets are produced, the average variable cost is $30.Tankao's:
A)average total cost is $30.
B)average total cost is greater than $30.
C)average total cost is less than $30.
D)average fixed cost is $30.

Question

Quizplus · Accepted Answer

The average total cost includes both average variable cost and average fixed cost. Since the average variable cost is $30, the average total cost must be greater than $30 because it also includes the average fixed cost.

Tankao Makes Bluetooth Sets for Mobile Devices