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.
Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter22: Getting Divisions To Work In The Firm’s Best Interests
Section: Chapter Questions
Problem 3MC
Related questions
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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Faf22463b-3db7-4d16-9c75-5d21ca280f85%2F8f6b60b1-1b32-46c1-85a4-f962bbad8985%2F6pjtek6_processed.jpeg&w=3840&q=75)
Transcribed Image Text:**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
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics: Applications, Strategies an…
Economics
ISBN:
9781305506381
Author:
James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:
Cengage Learning
Essentials of Economics (MindTap Course List)
Economics
ISBN:
9781337091992
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning