QUESTION 1 6 points Save Answer Answer the next question(s) on the basis of the

Question

QUESTION 1 6 points Save Answer Answer the next question(s) on the basis of the following cost data: Total Cost $24 Output 2 3 4 5 6 41 48 54 61 69 Refer to the above data. The average total cost of producing 3 units of output is: $12 O $13.50. $16. QUESTION 2 7 points Save Answer Marginal cost is the rate of change in total fixed cost that results from producing one more unit of output. change in total cost that results from producing one more unit of output. change in average variable cost that results from producing one more unit of output. cha nge in average total cost that results from producing one more unit of o utput.

Explanation / Answer

Ans:

1) $16.

Average total cost = Total cost / Output

Average total cost of producing 3 unit of output = $48 / 3

= $16.

2) change in total cost that results from producing one more unit of output.

Marginal cost is the change in total cost resulting from producing one additional unit of output.hence marginal cost includes both fixed cost and variable cost.

Related Questions

Navigate

• Browse (All)
• Browse Q
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.