You operate a factory that produces beach towels.Your current level of output equals 2,000 towels per week.Your weekly variable cost equals $8,000.If your total cost each week equals $9,000, it follows that:
A) the average variable cost of production equals $2 per towel.
B) the average total cost of production equals $4 per towel.
C) the average total cost of production equals $4.50 per towel.
D) the average total cost of production equals $8 per towel.
E) the average fixed cost of production equals $1 per towel.
Correct Answer:
Verified
Q74: Total variable costs:
A) are costs associated with
Q79: Fixed costs are best defined as:
A)costs that
Q80: Which of the following is false?
A)The total
Q82: A firm is producing 1,000 units of
Q85: If average fixed cost and average variable
Q86: Average fixed cost:
A) remains unchanged as output
Q86: The average total cost of producing laptop
Q93: Average fixed cost is:
A) total cost divided
Q116: If average total cost equals $15 at
Q166: Assuming fixed costs are positive,over a range
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents