Adam operates a factory that produces beach towels. His current level of output equals 2000 towels per week. His weekly variable cost equals $12 000. If the total cost each week equals $13 500, what can you conclude about the fixed costs of production? The total cost equals $25 500. The total fixed cost equals $12.75 per towel. The average fixed cost equals 75 cents per towel. The average fixed cost equals $1500.

Adam operates a factory that produces beach towels. His current level of output equals 2000 towels per week. His weekly variable cost equals $12 000. If the total cost each week equals $13 500, what can you conclude about the fixed costs of production? The total cost equals $25 500. The total fixed cost equals $12.75 per towel. The average fixed cost equals 75 cents per towel. The average fixed cost equals $1500.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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