Question

If the total cost is E1000 and the average fixed cost is E15 when 20 units of output are produced, then the average variable cost at that level of output is the following: a. Impossible to determine b. E45 c. E35 d. E30

Answer 1

If the total cost is E1000 and the average fixed cost is E15 with 20 units of output, then the average variable cost at that level of output is c. E35.

What is the variable cost?

The variable cost is the cost element that varies with output.

When the output increases, the variable cost increases in total, while remaining the same per unit.

Data and Calculations:

Total cost = E1,000

Average fixed cost = E15

Output = 20 units

Total fixed cost = E300 (E15 x 20)

Total variable cost = E700 (E1,000 - E300)

Average variable cost = E35 (E700/20)

Thus, if the total cost is E1000 and the average fixed cost is E15 when 20 units of output are produced, then the average variable cost at that level of output is c. E35.

Learn more about variable costs at brainly.com/question/14107176

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