At zero output the total cost is 10 dollars and 20 dollars at one unit of output, the total fixed costs are ________________ dollars and the average variable and average total costs are ___________________ and______________ respectively. Fill in the blanks.

Answered: At zero output the total cost is 10…

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter6: Proudction Costs

Section: Chapter Questions

Problem 8SQP

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At zero output the total cost is 10 dollars and 20 dollars at one unit of output, the total fixed costs are ________________ dollars and the average variable and average total costs are ___________________ and______________ respectively. Fill in the blanks.

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Step 1

Total cost is the sum of fixed cost and variable cost in which fixed cost is independent of output produced whereas variable cost varies with the level of production.

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