Question

The table below shows the monthly cost of producing vintage model cars for collectors for quantities 0, 100, 200, and 500.

Complete the table by filling in the average fixed cost, average variable cost, and average total cost.

Output
0
100
200
500
Total Fixed Cost
$1,500
1,500
1,500
1,500
Total Variable Cost
$0
500
1,000
4,050
Total Cost
$1,500
2,000
2,500
5,500
Average Fixed Cost
-
Blank
Blank
Blank
Average Variable Cost
-
Blank
Blank
Blank
Average Total Cost
-
blank
blank
blank

Answer 1

To fill in the table, calculate the average fixed cost, average variable cost, and average total cost for each output level. The average fixed cost is the total fixed cost divided by the quantity, the average variable cost is the total variable cost divided by the quantity, and the average total cost is the sum of the average fixed cost and the average variable cost.

Step-by-step explanation:

To fill in the table, we need to calculate the average fixed cost, average variable cost, and average total cost for each output level. The average fixed cost is the total fixed cost divided by the quantity. The average variable cost is the total variable cost divided by the quantity. The average total cost is the sum of the average fixed cost and the average variable cost.

1. For output 0: Average fixed cost = $1,500 / 0 = undefined, Average variable cost = $0 / 0 = undefined, Average total cost = undefined + undefined = undefined
2. For output 100: Average fixed cost = $1,500 / 100 = $15, Average variable cost = $500 / 100 = $5, Average total cost = $15 + $5 = $20
3. For output 200: Average fixed cost = $1,500 / 200 = $7.50, Average variable cost = $1,000 / 200 = $5, Average total cost = $7.50 + $5 = $12.50
4. For output 500: Average fixed cost = $1,500 / 500 = $3, Average variable cost = $4,050 / 500 = $8.10, Average total cost = $3 + $8.10 = $11.10