8. A firm produces 400 units of output at a total cost of $1,200. If total variable costs are $1,000,a. average fixed cost is 50 cents.b. average variable cost is $2.c. average total cost is $2.50.d. average total cost is 50 cents.

Given that, Output (Q) = 400units Total cost = $1,200 Total variable cost = $1,000

8. A firm produces 400 units of output at a total cost of $1,200. If total variable costs ar a. average fixed cost is 50 cents. b. average variable cost is $2. c. average total cost is $2.50. d. average total cost is 50 cents.

8. A firm produces 400 units of output at a total cost of $1,200. If total variable costs ar a. average fixed cost is 50 cents. b. average variable cost is $2. c. average total cost is $2.50. d. average total cost is 50 cents.

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter12: The Cost Of Production

Section: Chapter Questions

Problem 7PA

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Question

8. A firm produces 400 units of output at a total cost of $1,200. If total variable costs are $1,000,
a. average fixed cost is 50 cents.
b. average variable cost is $2.
c. average total cost is $2.50.
d. average total cost is 50 cents.

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