Question

Suppose the total cost of producing 5 comma 000 tennis balls is ​$50 comma 000​, and the fixed cost is ​$10 comma 000. What is the variable​ cost? ​$ nothing. ​(Enter a numeric response using an​ integer.) When output is 5 comma 000​, what is the average variable​ cost? ​$ nothing. ​(Enter a numeric response using a real number rounded to two decimal​ places.) When output is 5 comma 000​, what is the average fixed​ cost? ​$ nothing. ​(Enter a numeric response using a real number rounded to two decimal​ places.)

Answer 1

Answer:The variable cost = $40,000, The average variable cost = $8,The average fixed cost =$2

Explanation: To calculate Variable Cost

TC = FC + VC

Therefore, VC= TC - FC

$50,000-$10,000

=$40,000

To calculate average variable cost

AVC/Q

= $40,000/$5,000

= $8

To calculate average fixed cost

TFC/Q

$10,000/$5,000

=$2