The Sunshine Corporation finds that its costs are $40 when it produces no output.Its total variable costs (TVC)change with output as shown in the accompanying table.Use this information to answer the following question. $$\begin{array} { c c c }
\text { Output } & & \text { TVC } \
\hline
1 & & \$ 30 \
2 & & 50 \
3 & & 65 \
4 & & 85 \
5 & & 110
\end{array}$$ Refer to the information.The average total cost of 3 units of output is:

Question

The Sunshine Corporation finds that its costs are $40 when it produces no output.Its total variable costs (TVC)change with output as shown in the accompanying table.Use this information to answer the following question. $$\begin{array} { c c c } 
\text { Output } & & \text { TVC } \
\hline
1 & & \$ 30 \
2 & & 50 \
3 & & 65 \
4 & & 85 \
5 & & 110
\end{array}$$ Refer to the information.The average total cost of 3 units of output is:

Quizplus · Accepted Answer

To find the average total cost (ATC), we need to add up the total costs (fixed and variable) and divide by the number of units produced.

The total cost (TC) for 3 units of output can be calculated by adding the TVC for 3 units to the fixed cost:

TC = TVC + FC 
TC = 65 + 40 = 105

So, the ATC for 3 units of output is:

ATC = TC / Output 
ATC = 105 / 3 = $35

Therefore, the correct answer is D.

The Sunshine Corporation Finds That Its Costs Are $40 When Output TVC 1$302503654855110\begin{array} { c c c } \text { Output } & & \text { TVC } \\\hline1 & & \$ 30 \\2 & & 50 \\3 & & 65 \\4 & & 85 \\5 & & 110\end{array} Output 12345​​ TVC $30506585110​​

The Sunshine Corporation Finds That Its Costs Are $40 When $\begin{array} { c c c } \text { Output } & & \text { TVC } \\\hline1 & & \$ 30 \\2 & & 50 \\3 & & 65 \\4 & & 85 \\5 & & 110\end{array}$