ECONOMICS
PROFIT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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At 100 units of output, a firm’s total cost is $10, 000. If the firm’s total fixed cost is $4, 000, its average variable cost is equal to:
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$140
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$100
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$60
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$40
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Explanation:
Detailed explanation-1: -When the firm produces 100 units its total costs are $3, 500. When it produces 101 units of output, its total costs are $3, 750.
Detailed explanation-2: -TC= Rs. 330. Was this answer helpful?
Detailed explanation-3: -Variable costs are the sum of all labor and materials required to produce a unit of your product. Your total variable cost is equal to the variable cost per unit, multiplied by the number of units produced. Your average variable cost is equal to your total variable cost, divided by the number of units produced.
Detailed explanation-4: -In Economics, the average variable cost is the variable cost per unit. Average variable cost is determined by dividing the total variable cost by the output.
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