Asked by Ahmad Ahmadzai on Jul 14, 2024
Verified
(Figure: The Average Total Cost Curve) Use Figure: The Average Total Cost Curve.The total cost of producing five pairs of boots is approximately:
A) $408.
B) $82.
C) $108.
D) $17.
Total Cost
The complete cost of production that includes both fixed and variable costs.
Producing
The process of creating goods or services by combining various elements or resources.
Boots
Footwear that covers not only the feet but also the ankles and sometimes extends up to the knees or higher, designed for protection, style, or both.
- Work out the mean values of fixed, variable, total, and incremental costs.
- Investigate and explain the dynamics of cost curves, including total cost, marginal cost, and average cost curves.
Verified Answer
AG
Anquanetta GracieJul 17, 2024
Final Answer :
A
Explanation :
The total cost of producing five pairs of boots can be determined by looking at the average total cost (ATC) for five units and then multiplying by the quantity. The ATC at five units, as shown on the graph, is approximately $82. To find the total cost, multiply the ATC by the quantity (5 pairs of boots), which equals $410. However, since $408 is the closest option provided, it is the correct answer, indicating a slight discrepancy or rounding in the question or graph interpretation.
Learning Objectives
- Work out the mean values of fixed, variable, total, and incremental costs.
- Investigate and explain the dynamics of cost curves, including total cost, marginal cost, and average cost curves.