in the table below, compute average a Compute average fixed costs and average va
ID: 1112471 • Letter: I
Question
in the table below, compute average a Compute average fixed costs and average variable costs for all ates of output Instructions: Indicate negative responses with a (-) negative sign. fixed costs and average variable costs for all rates of output and answer three questions about average costs Rate of Fied Average Fixed Variable Average Costs OutputCosts $120 120 120 120 120 120 120 120 Average Total Cost Total Cost Costs Costs 0$120 20 $20.50 15 125 150 240 6.33 270 13.50 360 12.00 470 11.75 670 13.40 14.76 51 b. At what rate of output are average fixed costs the lowest? c At what rate of output are average variable costs the lowest? d. At what rate of output is average total cost the lowest? 633 units units units ReterencesExplanation / Answer
AVG fixed cost = fixed cost / total units
Rate of output AFC AVC
10 12 8.5
15 8 8.33
20 6 7.5
30 4 8.0
40 3 8.75
50 2.4 11
51 2.35 12.41
avg fixed costs are lowest when rate of output is 51
avg variable costs are lowest when rate of output is 20
avg total costs are lowest when rate of output is 30
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