Production Production Help Save Exit 0 You received no credi

Production Help Save& Exit 0 You received no credit for this question in the previous attempt 9 fyou know that when a firm produces 10 units of output, total cost is $1,030 and average fixed cost is $10, then total variable cost is 667 Mutiple Choice 838 3 6

Solution

Ans:

9) $930

Average fixed cost = Total fixed cost / output

Total fixed cost = Average fixed cost * output

= $10 * 10

= $100   

Total variable cost = Total cost - Total fixed cost

= $1030 - $100

= $930

10) $8

Total cost when output is zero units is $24 , which is total fixed cost.

Average fixed cost = Total fixed cost / output

Average fixed cost of producing 3 units of output is = $24 / 3

= $8.