, & 16 Exam- Requires Respondus LockDown Browser Time Left:0:08:47 Dalisia Brown

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, & 16 Exam- Requires Respondus LockDown Browser Time Left:0:08:47 Dalisia Brown: Attempt 2 Save Question 19 (1 point) Use the following scenario to answer the questions that follow Steve owns a bike store. His total costs are $1.2 million per year, his variable costs are $750,000, and his fixed costs are $450,000 per year. Last year, Steve sold 1,200 bikes. Steve's average total cost was-…… per bike. A) $1,000 B) $1.200 C) $375 D) $625 o Save Question 20 (1 poin) When the average total cost curve is downward-sloping, what must be true about the marginal

Explanation / Answer

ANSWER:

Total cost = $1,200,000

no of bikes sold = 1,200

average total cost = total cost / no of bikes sold = $1,200,000 / 1,200 = 1,000

so the average total cost is $1,000.

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