Total Total Average Average Average Total Marginal Variable Fixed Cost $200 Output Fixed Variable Total (Q) Cost Cost $0 Cost Cost Cost Cost $200 20 $200 $150 $350 40 $200 $250 $450 60 $200 $450 $650 80 $200 $800 $1,000
Total Total Average Average Average Total Marginal Variable Fixed Cost $200 Output Fixed Variable Total (Q) Cost Cost $0 Cost Cost Cost Cost $200 20 $200 $150 $350 40 $200 $250 $450 60 $200 $450 $650 80 $200 $800 $1,000
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:Question 7 of 20
Total
Total
Average Average Average
Fixed Variable Total Marginal Variable Fixed
Cost
$200
Output
Total
(Q)
Cost
Cost
Cost
Cost
Cost
Cost
$0
$200
$200
$150
$350
40
$200
$250
$450
60
$200
$450
$650
80
$200
$800
$1,000
For the cost data shown above, what is this firm's Average Total Cost (ATC) when Output (Q) is 80?
$12.50
$1,000
$11.25
O $10.83
20
Expert Solution

Step 1
The firm produces various goods and services and results in various costs on the production of goods and services. The cost incurred on the firm would result in the fixed cost and the variable cost. The fixed cost and the variable cost would result in the production of output.
The ATC would result in the ratio of the total cost and the output. The marginal cost is the ratio of the change in the cost and the change in the output.
The firm produces various goods and services, which would result in the production of the good in the fixed cost and the variable cost.
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