9.3 Short-Run Decisions
Assume the following total cost schedule for a perfectly competitive firm.
TABLE 9-2
-Refer to Table 9-2.If the firm is producing at an output level of 2 units,the ATC is ________ and the AVC is ________.

Question

9.3 Short-Run Decisions
Assume the following total cost schedule for a perfectly competitive firm.
  TABLE 9-2
-Refer to Table 9-2.If the firm is producing at an output level of 2 units,the ATC is ________ and the AVC is ________.

Quizplus · Accepted Answer

The Average Total Cost (ATC) is calculated by dividing the total cost by the quantity of output. The Average Variable Cost (AVC) is calculated by dividing the total variable cost by the quantity of output. Based on the given options, $85 for ATC and $35 for AVC are the correct values for an output level of 2 units.

9.3 Short-Run Decisions Assume the Following Total Cost Schedule for a Perfectly Competitive