If you know that with 8 units of output,average fixed cost is $40 and average variable cost is $25,then total cost at this output level is:
A)$320
B)$200
C)$520
D)$1000

Question

Quizplus · Accepted Answer

Total cost at this output level can be calculated as follows:
Total cost = (Average fixed cost + Average variable cost) * Quantity
Total cost = ($40 + $25) * 8
Total cost = $520

Therefore, the best choice is C.

If You Know That with 8 Units of Output,average Fixed