Register
1. If average fixed cost is 40 and average variable cost is 80 for a given output, we then know that average total cost is
433,532 views
27 votes
27 votes
1. If average fixed cost is 40 and average variable cost is 80 for a given output, we then know that average total cost is

User Dondo
by
3.4k points

1 Answer

10 votes
10 votes

Answer:

120

Step-by-step explanation:

Average total cost = average fixed cost + average variable cost

average fixed cost = Total fixed cost / quantity

40 + 80 = 120

Fixed costs are costs that do not vary with output. e,g, rent, mortgage payments

average variable cost = total variable cost / quantity

Variable costs are costs that vary with production. Hourly wage costs and payments for production inputs are examples of variable costs

User Jorgonor
by
2.6k points
Ask a Question
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

1.6m questions

2.0m answers

Other Questions

If the rate of inflation in Japan dramatically increases while the rate of inflation in the United States remains constant, then a. the demand curve for dollars shifts to the left. b. the demand curve
If you buy a one-year bond for $4,000 and the issuer pays you back $5,000 at the end of one year, the interest rate on the bond is
The market value of the equity of Hudgins, Inc., is $582,000. The balance sheet shows $21,000 in cash and $192,000 in debt, while the income statement has EBIT of $93,000 and a total of $137,000 in depreciation
Kylie is risk averse and has $1,000 with which to make a financial investment. She has three options. Option A is a risk-free government bond that pays 5 percent interest each year for two years. Option
From the standpoint of the issuing company, a disadvantage of using bonds as a means of long-term financing is that Group of answer choices bond interest is deductible for tax purposes. interest must be
Link Copied!