**Table Cost.EX2: Costs and Outputs for a Competitive Firm**| Output (Q) | Total Fixed Costs (TFC) | Total Variable Costs (TVC) ||------------|-------------------------|----------------------------|| 0 | $40.00 | $0.00 || 2 | $40.00 | $40.00 || 4 | $40.00 | $90.00 || 6 | $40.00 | $130.00 || 8 | $40.00 | $190.00 || 10 | $40.00 | $260.00 |Refer to Table Cost.EX2. For 8 units, the average total cost is about _______.- ○ $23.75- ○ $26.75- ○ $30.00- ○ $28.75**Explanation:**In this exercise, a table displays how costs vary with output for a competitive firm. Fixed costs remain constant at $40.00 across all output levels, while variable costs increase as output increases. This exercise asks for the average total cost when the output is 8 units, offering multiple-choice options for the correct amount. The average total cost is calculated by summing total fixed and variable costs and dividing by the output quantity.

Answer: Introduction, Average total cost (ATC) average total cost refers to the per-unit total cost…

Table Cost.EX2: Costs and Outputs for a Competitive Firm Total Total Output Fixed Variable (Q) Costs (TFC) Costs (TVC) $40.00 $0.00 2 $40.00 $40.00 4 $40.00 $90.00 6. $40.00 $130.00 8. $40.00 $190.00 10 $40.00 $260.00 Refer to Table Cost.EX2. For 8 units, the average total cost is about O $23.75 O $26.75 O $30.00 O $28.75

Table Cost.EX2: Costs and Outputs for a Competitive Firm Total Total Output Fixed Variable (Q) Costs (TFC) Costs (TVC) $40.00 $0.00 2 $40.00 $40.00 4 $40.00 $90.00 6. $40.00 $130.00 8. $40.00 $190.00 10 $40.00 $260.00 Refer to Table Cost.EX2. For 8 units, the average total cost is about O $23.75 O $26.75 O $30.00 O $28.75

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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