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
Chapter3: Benefits, Costs, And Decisions
Section: Chapter Questions
Problem 1MC
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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](/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
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