If Jason's fixed cost totals $400 with variable cost per unit of $10 at a quantity of 80 units, what would his average total cost at 80 units of output equal?

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Quizplus · Accepted Answer

The average total cost is calculated by adding the total fixed cost and total variable cost, then dividing by the quantity of units. Total variable cost is $10 * 80 = $800. Total cost is $400 + $800 = $1200. Average total cost is $1200 / 80 = $15.

If Jason's Fixed Cost Totals $400 with Variable Cost Per