Answered: 8. If average variablecost is $74 and…

8. If average variablecost is $74 and total fixed cost is $100 at 5 units of output, thenaverage total cost at this output levelis: A. $91. B. $94.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter7: Production, Costs, And Industry Structure

Section: Chapter Questions

Problem 19RQ: What shapes would you generally expect each of the following cost curves to have: fixed costs,...

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Concept explainers

Short-Run Costs and Long-Run Costs

Cost of short-run and the long-run is an economic term that describes the cost involved in the production of goods in a firm in the short as well as long period.

Question

8. If average variablecost is $74 and total fixed cost
is $100 at 5 units of output, thenaverage total cost
at this
output levelis:
A. $91.
B. $94.
C. $97.
D. $100.

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