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Tatiana [17]
3 years ago
13

A business produces 10 units of output. Its average variable cost (AVC) = $25, average fixed cost (AFC) = $5, and marginal cost

(MC) = $30. The firm's average total cost (ATC) is ________.
Business
1 answer:
kramer3 years ago
6 0

Answer: $30

Explanation:

Given that,

Average variable cost (AVC) = $25

Average fixed cost (AFC) = $5

Marginal cost (MC) = $30

Average total cost (ATC) = Average fixed cost (AFC) + Average variable cost (AVC)

                                          = $5 + $25

                                          = $30

Therefore, average total cost is the sum of average fixed cost and average variable cost. Alternatively, average total cost is calculated by dividing total cost to units of output produced.

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