If a firm's total fixed cost (TFC) is $100 and its total variable cost (TVC) is $300 at an output of 4 units, what is its average total cost (ATC)?
Explanation
This question requires a multi-step calculation involving the definitions of total cost and average total cost, based on data similar to that found in the chapter's tables.
Other questions
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If a firm's total cost increases from $400 to $470 when it increases its output from 4 to 5 units, what is the marginal cost of the fifth unit?
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Which of the following would be considered an implicit cost for a firm?
If a firm's economic profit is zero, what can be concluded about its accounting profit?
At which point does the marginal product (MP) curve intersect the average product (AP) curve?
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If a firm's total fixed cost is $100 and its total variable cost is $170 for producing 2 units, what is its average fixed cost (AFC) at this output level?
What is the relationship between the average-product (AP) curve and the average-variable-cost (AVC) curve?
Why does the average fixed cost (AFC) curve slope continuously downward?
An industry characterized by a U-shaped long-run ATC curve where minimum efficient scale (MES) is achieved at a low level of output is likely to be populated by:
In the example of the Verson stamping machine, which is a 49-foot-tall machine costing $30 million, what concept of production costs does it primarily illustrate?
Total cost (TC) is the sum of:
If a firm has a total fixed cost of $100 and produces 5 units of output with a total cost of $470, what is its total variable cost?
The law of diminishing returns provides the rationale for why:
In a situation with a fixed plant, when a firm's total product is increasing at an increasing rate, what is happening to its marginal product?
If a firm has an economic profit of $24,000 and an accounting profit of $57,000, what is the value of its implicit costs?
If an increase in a firm's output from 8 to 9 units causes total cost to rise from $750 to $880, what is the marginal cost of the ninth unit?
The period in which technology and plant and equipment are fixed is defined as the:
When average product (AP) is at its maximum, what is the relationship between marginal product (MP) and average product?
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What does a range of constant returns to scale on a long-run average total cost curve imply?
If a firm increases all of its inputs by 10 percent and its output increases by 5 percent, the firm is experiencing:
Using the data in Table 8.1, what is the average product (AP) when 5 units of labor are employed?
If a firm pays $10 per unit for labor, and the average product of labor is 10, what is the average variable cost (assuming labor is the only variable input)?
Why must a firm's marginal cost eventually rise in the short run?
When a firm's marginal cost is less than its average total cost, what must be true of the average total cost?
What does the vertical sum of the total fixed cost (TFC) curve and the total variable cost (TVC) curve represent?