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"When output = 10, average fixed costs = $3 and total variable costs = $10. Average total costs When output = 10, average fixed costs = $3 and total variable costs = $10. Average total costs "

Respuesta :

Answer:

ATC=4

Explanation:

To calculate Average Total Cost,

Start by finding the quantity Q, which is the number of units the company is producing.

Q=10

Average Variable Cost = Variable cost/Qty

10/10=1

Find out the average total cost using the equation. i.e Average Total Cost = Average Fixed Cost (AFC) + Average Variable Cost (AVC)

ATC=AFC+AVC

ATC=3 + 1

ATC=4

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