Answer:
The correct option is D: $8.60
Explanation:
Average fixed cost of Pretty Flowers = $5.40
Average variable costs of Pretty Flowers = $3.20
We are asked to calculate the Average total cost of Pretty Flowers at this current level
Hence:
Average total cost Pretty Flowers = Average fixed cost of Pretty Flowers + Average variable costs of Pretty Flowers
If we substitute the value of these variables in the equation, we get:
Average total cost Pretty Flowers = $5.40 + $3.20 = $8.60
Answer:
4 houses per month.
Explanation:
Note: See the attached file for the calculation.
Efficient scale of production is can be described as the number of units of production where average total cost (ATC) of production is lowest.
From the attached file, the ATC of $70 is the lowest at 4 houses per month and 4 houses per month is therefore the efficient scale.
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Answer: D. Manufacturing
Explanation: The companies manufacture the new cars/ houses.
