-Using the above table, the AFC, the AVC, and the ATC when output is 1 unit are
A) $10, $10, and $20, respectively.
B) $5, $10, and $15, respectively.
C) $0, $10, and $10, respectively.
D) $5, $10, and $5, respectively.

Question

-Using the above table, the AFC, the AVC, and the ATC when output is 1 unit are
A) $10, $10, and $20, respectively. 
B) $5, $10, and $15, respectively. 
C) $0, $10, and $10, respectively. 
D) $5, $10, and $5, respectively.

Quizplus · Accepted Answer

AFC is $5 (fixed cost per unit), AVC is $10 (variable cost per unit), and ATC is $15 (sum of AFC and AVC).

-Using the Above Table, the AFC, the AVC, and the ATC