Question

When Ajax Co. produced 3 units of output per​ week, its total fixed cost was ​$100100 and total variable cost was ​$5050. When output increased to 4 units per​ week, total fixed cost remained at ​$100100 and total variable cost increased to ​$7070.

When output was 4 units per​ week, total cost was ​$_________? ​(Enter your response as an​ integer.)

Answer 1

$170

Step-by-step explanation:

As we know that

Total cost = Total fixed cost + total variable cost

The total fixed cost would remain the same whether the production level increases or not but the case is not the same as the total variable cost. In total variable cost, the output will change as per the production level changes

When output was 4 units per week, The total cost would be

= Total fixed cost + total variable cost

= $100 + $70

= $170