Marginal PhysicalTotalTotalProduct ofVariableFixedVariable InputFixedVariable MarginalInputInputCostCostCostOutput(units) (units) (units)(units)(dollars) (dollars) (dollars)1$500$01110(A)$500$200(F.2125(B)$500$400(G)3145(C).$500$600(H).4160(D)$500$800(1).5170(E).$500$1000Refer to Exhibit 21-3. What is the average total cost of producing 45 units of output?a. $24.44b. $21.11c. $21.33d. $25.11

We know , TC = TFC + TVC TC = 500+ 600 TC = $1100

Output (units) (units) (units) (units) |(dollars) (dollars) (dollars) 1 $500 $0 1 1 10 (A). $500 $200 (F) 1 25 (B) $500 $400 (G) 3 1 45 (C). $500 $600 (H) 4 1 60 (D) $500 $800 (1) 5 1 70 (E) $500 $1000 (). is the average total cost of producing 45 units of output?

Output (units) (units) (units) (units) |(dollars) (dollars) (dollars) 1 $500 $0 1 1 10 (A). $500 $200 (F) 1 25 (B) $500 $400 (G) 3 1 45 (C). $500 $600 (H) 4 1 60 (D) $500 $800 (1) 5 1 70 (E) $500 $1000 (). is the average total cost of producing 45 units of output?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Marginal Physical
Total
Total
Product of
Variable
Fixed
Variable Input
Fixed
Variable Marginal
Input
Input
Cost
Cost
Cost
Output
(units) (units) (units)
(units)
(dollars) (dollars) (dollars)
1
$500
$0
1
1
10
(A)
$500
$200
(F.
2
1
25
(B)
$500
$400
(G)
3
1
45
(C).
$500
$600
(H).
4
1
60
(D)
$500
$800
(1).
5
1
70
(E).
$500
$1000
Refer to Exhibit 21-3. What is the average total cost of producing 45 units of output?
a. $24.44
b. $21.11
c. $21.33
d. $25.11

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