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Slav-nsk [51]
4 years ago
14

You run a small business producing candles. This month your total cost is $10,000, your variable cost is $5,000, and your output

is 5,000 candles. Given this information, your: Group of answer choices Average total cost is $3. Average fixed cost is $1. Average total cost is $1. Average variable cost is $2.
Business
2 answers:
ArbitrLikvidat [17]4 years ago
5 0

Answer:

Average fixed cost is $1

Explanation:

Given that

Total cost = 10000

Variable cost = 5000

Output = 5000

Recall that

Total cost = fixed cost + variable cost

Fixed cost = total - variable

Fixed cost = 10,000 - 5000

FC = 5000

Also,

Average Fixed cost = fixed cost / output

Thus = 5000/5000

= $1

Therefore, Average Fixed cost is $1.

Also note that

Average variable cost, AVC = $1

Average Total cost, ATC = $2

Gala2k [10]4 years ago
5 0

Answer:

Average cost =$2 per candle

Explanation:

<em>Average cost is the cost of producing a typical unit of a product. It is determined as follows:</em>

Average cost = Total cost/ Number of units

<em>Total cost is the sum of variable and fixed cost and it is given in the question as $10,000  </em>                  

<em>So, average cost = $10,000/5,000 candles</em>

                              =$2 per candle

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