Question

The total cost of producing 15 tons of butter is $35000. If average variable cost is $530, then what is the firm's average fixed cost? (enter answer as just a number, no commas, dollar signs, or the like)

Answer 1

$1803.33

Step-by-step explanation:

average total cost = average variable cost + average fixed cost

average total cost = total cost / quantity = $35000 / 15 = $2,333.33

average fixed cost = $2,333.33 - $530 = $1803.33