Tom’s Tent Company has total fixed costs of $300,000 per year. The firm's average variable cost is $80 for 10,000 tents. At that
1 answer:
Answer:
The firm average total cost is $110
correct option is d. $110
Explanation:
given data
total fixed costs = $300,000 per year
average variable cost = $80
tents = 10,000
to find out
we know that average total costs is sum of average fixed cost and average variable cost .........................1
here
Average fixed cost = total fixed cost ÷ number of unit output
Average fixed cost =
Average fixed cost = $30
so
average total costs = Average fixed cost + average variable cost
average total costs = $30 + $80
average total costs = $110
correct option is d. $110
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Answer:
2 and 4
Explanation:
Japanese worker can produce 6 units of steel or 3 televisions per hour.
Korean worker can produce 8 units of steel or 2 televisions per hour.
Opportunity cost is the cost of the lost alternative. So when the country decides to produce only televisions it has to give up on steel production. Thus, the units of steel forgone for each unit of television gained is an opportunity cost of a television.
Thus,
Opportunity cost of television for Japan =
Opportunity cost of television for Korea =
