Answered: If you know that total fixed cost is…

If you know that total fixed cost is $400, total variable cost is $200, and total output is 4 units, then average total cost must be: A. $150 B. $300 C. $450 D. $600

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

If you know that total fixed cost is $400, total variable cost is $200, and total output is 4 units, then average total cost must be:
A. $150
B. $300
C. $450
D. $600

Definition Definition Total cost of producing a certain quantity of a good, divided by the quantity produced. It is the sum of all costs (fixed and variable) required to produce one unit of output.

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