Answered: Fixed cost = AED 3000 Variable cost=…

Fixed cost = AED 3000 Variable cost= AED 500 Quantity= 100 units price= AED 10 What is the amount of: 1- Total costs? 2- Average total costs? 3- Total revenue?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

If you know that:

Fixed cost = AED 3000 Variable cost= AED 500 Quantity= 100 units price= AED 10

What is the amount of:

1- Total costs?

2- Average total costs?

3- Total revenue?

What are possible three market conditions in which the invisible hand is not working and there is a dead weight loss (lost economic surplus) in the market?

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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1) Calculation of Total cost:

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2) Average total cost:

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3) Total Revenue:

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