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vagabundo [1.1K]
2 years ago
6

Auctio sells sprockets in a perfectly competitive market. Below are its short-run total variable costs at different output level

s. The firm's fixed cost is $5. The market price of one sprocket is $8. Units Total Variable Cost 0 $0 1 $12 2 $18 3 $22 4 $28 5 $35 6 $43 What is the average total cost of the 5th unit
Business
1 answer:
ra1l [238]2 years ago
3 0

Answer:

$36

Explanation:

Average total cost = total variable cost + fixed cost ) / output

total variable cost  = variable cost x output

35 x 5 = 175

175 + 5) / 5 = 36

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