Answered: With fixed costs of $400, a firm has…

With fixed costs of $400, a firm has average total costs of $3 and average variable costs of $2.50. Its output is: Group of answer choices 200 units 400 units 1600 units 800 units

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter6: Proudction Costs

Section: Chapter Questions

Problem 9SQP

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Question

With fixed costs of $400, a firm has average total costs of $3 and average variable costs of $2.50. Its output is:

Group of answer choices

200 units

400 units

1600 units

800 units

Definition Definition Total cost of producing a certain quantity of a good, divided by the quantity produced. It is the sum of all costs (fixed and variable) required to produce one unit of output.

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