Below is a chart of costs for Starbucks Coffee Roasters, in Seattle Washington. Starbucks purchases coffee beans (crates) and roasts them to produce Y = roasted coffee (kg).
$\mathrm{TFC}=\$ 200$ $ \quad $$ \quad $ $P_{X}=\$ 500 / \text { CRATE }$

$\begin{array}{ccc}
\underline{\mathrm{Y}} &\underline{\mathrm{TVC}} &\underline{\mathrm{TC}} &\underline{\mathrm{ATC}}& \underline{\mathrm{AVC}}& \underline{\mathrm{MC}}\
0 & 0 & -- \
1 & 200 & -- \
2 & 300 & -- \
3 & 340 & -- \
4 & -- & 600 \
5 & 500 & -- \
6 & 1000 & --
\end{array}$
-What is the TC of producing 3 kg of coffee?

Question

Below is a chart of costs for Starbucks Coffee Roasters, in Seattle Washington. Starbucks purchases coffee beans (crates) and roasts them to produce Y = roasted coffee (kg).
 $\mathrm{TFC}=\$ 200$ $ \quad $$ \quad $ $P_{X}=\$ 500 / \text { CRATE }$

$\begin{array}{ccc}
\underline{\mathrm{Y}} &\underline{\mathrm{TVC}} &\underline{\mathrm{TC}} &\underline{\mathrm{ATC}}& \underline{\mathrm{AVC}}& \underline{\mathrm{MC}}\
0 & 0 & -- \
1 & 200 & -- \
2 & 300 & -- \
3 & 340 & -- \
4 & -- & 600 \
5 & 500 & -- \
6 & 1000 & --
\end{array}$
-What is the TC of producing 3 kg of coffee?

Quizplus · Accepted Answer

Total Cost (TC) is the sum of Total Fixed Cost (TFC) and Total Variable Cost (TVC). For 3 kg of coffee, TVC is $340. Given TFC is $200, TC = TFC + TVC = $200 + $340 = $540.

Below Is a Chart of Costs for Starbucks Coffee Roasters TFC=$200\mathrm{TFC}=\$ 200TFC=$200

Below Is a Chart of Costs for Starbucks Coffee Roasters $\mathrm{TFC}=\$ 200$