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 4 units,the ATC is ________ and the AVC is ________.
A)$280; $180
B)$25; $45
C)$70; $45
D)$70; $35
E)$180; $100

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 4 units,the ATC is ________ and the AVC is ________.
A)$280; $180 
B)$25; $45 
C)$70; $45 
D)$70; $35 
E)$180; $100

Quizplus · Accepted Answer

The ATC at an output level of 4 units can be calculated by dividing the total cost ($280) by the output level (4), which equals $70. The AVC can be found by dividing total variable cost ($180) by the output level (4), which equals $45. Therefore, the correct answer is C ($70 for ATC and $45 for AVC).

There is only one correct choice in this question.

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