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 6 units,the ATC is ________ and the AVC is ________.
A)$55; $16.67
B)$38.33; $16.67
C)$80; $55
D)$55; $80
E)$71.67; $55

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 6 units,the ATC is ________ and the AVC is ________.
A)$55; $16.67 
B)$38.33; $16.67 
C)$80; $55 
D)$55; $80 
E)$71.67; $55

Quizplus · Accepted Answer

The ATC (Average Total Cost) is calculated by dividing the total cost by the quantity of output. If the ATC is $71.67 and the AVC (Average Variable Cost) is $55 for 6 units, these values are consistent with the given options.

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