Asked by Nancy Torres on Jul 12, 2024
Verified
A business produces 10 pairs of eyeglasses.It incurs $30 in average variable cost and $5 in average fixed cost.The average total cost of producing 10 pairs of eyeglasses is:
A) $30.
B) $35.
C) $50.
D) $300.
Average Variable Cost
The total variable cost divided by the number of units produced, representing the variable cost per unit of output.
Average Fixed Cost
The fixed costs (costs that do not change with the level of output) of producing a good or service, divided by the quantity of output produced.
Total Cost
The entire cost of production, including both fixed and variable costs.
- Grasp the understanding of variable, fixed, and cumulative costs involved in production.
- Assess the mean fixed, variable, total, and edge costs.
Verified Answer
AA
Abdul AhteshamJul 12, 2024
Final Answer :
B
Explanation :
The average total cost is the sum of the average variable cost and the average fixed cost. Therefore, the average total cost is $30 (average variable cost) + $5 (average fixed cost) = $35.
Learning Objectives
- Grasp the understanding of variable, fixed, and cumulative costs involved in production.
- Assess the mean fixed, variable, total, and edge costs.