Total Total Output Fixed Variable (Q) Costs Costs 0. $50.00 $0.00 1 $50.00 $70.00 $50.00 $120.00 $50.00 $150.00 4 $50.00 $220.00 $50.00 $300.00 Refer to Table Cost.EX2. When production is 3 units, the firm's average total cost is about $66.67 O $68.67 No answer text provided. O No answer text provided.

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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### Table Cost.EX2: Costs and Outputs for a Competitive Firm

| Output (Q) | Total Fixed Costs | Total Variable Costs |
|------------|-------------------|----------------------|
| 0          | $50.00            | $0.00                |
| 1          | $50.00            | $70.00               |
| 2          | $50.00            | $120.00              |
| 3          | $50.00            | $150.00              |
| 4          | $50.00            | $220.00              |
| 5          | $50.00            | $300.00              |

---

Refer to Table Cost.EX2. When production is 3 units, the firm's average total cost is about ______.

- O $66.67
- O $68.67
- O No answer text provided.
- O No answer text provided.

### Explanation of the Table

The table displays the output levels (Q) for a competitive firm, along with corresponding total fixed and variable costs. Fixed costs remain constant at $50.00 as output increases. Variable costs start at $0.00 for 0 units and rise to $300.00 for 5 units, indicating increasing costs associated with production.

For calculation of the average total cost at 3 units:
- Total cost at 3 units = Fixed Cost + Variable Cost = $50.00 + $150.00 = $200.00
- Average total cost = Total Cost / Quantity = $200.00 / 3 units = $66.67

Thus, the closest answer for average total cost when production is at 3 units is $66.67.
Transcribed Image Text:### Table Cost.EX2: Costs and Outputs for a Competitive Firm | Output (Q) | Total Fixed Costs | Total Variable Costs | |------------|-------------------|----------------------| | 0 | $50.00 | $0.00 | | 1 | $50.00 | $70.00 | | 2 | $50.00 | $120.00 | | 3 | $50.00 | $150.00 | | 4 | $50.00 | $220.00 | | 5 | $50.00 | $300.00 | --- Refer to Table Cost.EX2. When production is 3 units, the firm's average total cost is about ______. - O $66.67 - O $68.67 - O No answer text provided. - O No answer text provided. ### Explanation of the Table The table displays the output levels (Q) for a competitive firm, along with corresponding total fixed and variable costs. Fixed costs remain constant at $50.00 as output increases. Variable costs start at $0.00 for 0 units and rise to $300.00 for 5 units, indicating increasing costs associated with production. For calculation of the average total cost at 3 units: - Total cost at 3 units = Fixed Cost + Variable Cost = $50.00 + $150.00 = $200.00 - Average total cost = Total Cost / Quantity = $200.00 / 3 units = $66.67 Thus, the closest answer for average total cost when production is at 3 units is $66.67.
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