**Table Cost.EX2: Costs and Outputs for a Competitive Firm**| Output (Q) | Total Fixed Costs | Total Variable Costs ||------------|-------------------|----------------------|| 0 | $80.00 | $0.00 || 1 | $80.00 | $70.00 || 2 | $80.00 | $120.00 || 3 | $80.00 | $150.00 || 4 | $80.00 | $220.00 || 5 | $80.00 | $300.00 |Refer to Table Cost.EX2. When production is 3 units, the firm's average total cost is about ______.- [ ] No answer text provided.- [ ] $76.57- [x] $76.67- [ ] No answer text provided. **Explanation:**To calculate the average total cost for 3 units, add the total fixed costs and total variable costs for 3 units, and then divide by the number of units:- Total Fixed Costs for 3 units = $80.00- Total Variable Costs for 3 units = $150.00Total Costs for 3 units = $80.00 + $150.00 = $230.00Average Total Cost = Total Costs / Quantity = $230.00 / 3 = $76.67

Average total cost is the total production cost divided by the total quantity produced.

Table Cost.EX2: Costs and Outputs for a Competitive Firm Total Total Output Fixed Variable (Q) Costs Costs $80.00 $0.00 1 $80.00 $70.00 $80.00 $120.00 $80.00 $150.00 4 $80.00 $220.00 $80.00 $300.00 Refer to Table Cost.EX2. When production is 3 units, the firm's average total cost is about O No answer text provided. O $76.57 O $76.67 O No answer text provided.

Table Cost.EX2: Costs and Outputs for a Competitive Firm Total Total Output Fixed Variable (Q) Costs Costs $80.00 $0.00 1 $80.00 $70.00 $80.00 $120.00 $80.00 $150.00 4 $80.00 $220.00 $80.00 $300.00 Refer to Table Cost.EX2. When production is 3 units, the firm's average total cost is about O No answer text provided. O $76.57 O $76.67 O No answer text provided.

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter7: Proudction Costs

Section: Chapter Questions

Problem 8SQP

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Question

**Table Cost.EX2: Costs and Outputs for a Competitive Firm**

| Output (Q) | Total Fixed Costs | Total Variable Costs |
|------------|-------------------|----------------------|
| 0 | $80.00 | $0.00 |
| 1 | $80.00 | $70.00 |
| 2 | $80.00 | $120.00 |
| 3 | $80.00 | $150.00 |
| 4 | $80.00 | $220.00 |
| 5 | $80.00 | $300.00 |

Refer to Table Cost.EX2. When production is 3 units, the firm's average total cost is about ______.

- [ ] No answer text provided.
- [ ] $76.57
- [x] $76.67
- [ ] No answer text provided.

**Explanation:**

To calculate the average total cost for 3 units, add the total fixed costs and total variable costs for 3 units, and then divide by the number of units:

- Total Fixed Costs for 3 units = $80.00
- Total Variable Costs for 3 units = $150.00

Total Costs for 3 units = $80.00 + $150.00 = $230.00

Average Total Cost = Total Costs / Quantity = $230.00 / 3 = $76.67

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