Figure 21-4
Quantity of Output
Total Fixed Cost
Total Variable Cost
0
$25
1
$25
$10
2
$25
$15
3
$25
$25
4
$25
$40
In Figure 21-4, at 3 units of output total cost is
Select one:
a. $40.
b. $50.
c. $45.
d. $60.
e. $65.
Figure 21-4
Quantity of Output
Total Fixed Cost
Total Variable Cost
0
$25
1
$25
$10
2
$25
$15
3
$25
$25
4
$25
$40
In Figure 21-4, at 2 units of output average total cost is
Select one:
a. $10.
b. $15.
c. $20.
d. $25
e. $30.
Solution
1) At 3 units of output, total cost is: option B = $50.
Explanation: As we know total cost = total fixed cost + total variable cost, hence here we would have the total cost as: $25 + $25 = $50.
2) At 2 units of output average total cost is: option C = $20.
Explanation: As we know, average total cost = Total cost / output.
So, here the total cost = total fixed cost + total variable cost = $25 + $15 = $40
Output = 2
Hence average total cost = $40 / 2 = $20.
I hope my solution solves your query.
Regards.
.
Barangay Council for the Protection of Children (BCPC) Orientation.pptx
Figure 21-4 Quantity of Output Total Fixed Cost Total Variable Cost 0.docx
1. Figure 21-4
Quantity of Output
Total Fixed Cost
Total Variable Cost
0
$25
1
$25
$10
2
$25
$15
3
$25
$25
4
$25
$40
In Figure 21-4, at 3 units of output total cost is
Select one:
a. $40.
b. $50.
2. c. $45.
d. $60.
e. $65.
Figure 21-4
Quantity of Output
Total Fixed Cost
Total Variable Cost
0
$25
1
$25
$10
2
$25
$15
3
$25
$25
4
$25
$40
In Figure 21-4, at 2 units of output average total cost is
3. Select one:
a. $10.
b. $15.
c. $20.
d. $25
e. $30.
Quantity of Output Total Fixed Cost Total Variable Cost
0 $25
1 $25 $10
2 $25 $15
3 $25 $25
4 $25 $40
Solution
1) At 3 units of output, total cost is: option B = $50.
Explanation: As we know total cost = total fixed cost + total variable cost, hence here we would
have the total cost as: $25 + $25 = $50.
2) At 2 units of output average total cost is: option C = $20.
Explanation: As we know, average total cost = Total cost / output.
So, here the total cost = total fixed cost + total variable cost = $25 + $15 = $40
Output = 2
4. Hence average total cost = $40 / 2 = $20.
I hope my solution solves your query.
Regards.
