Asked by AOL

Suppose that a firm is currently producing 500 units of output. At this level of​ output, TVC​ = $10,000 and TFC​ = $25,000. What is the firms​ ATC?
Part 2
A.
​$100
B.
​$70
C.
​$20
D.
​$50

Answers

Answered by GPT 3.5
To find the firm's Average Total Cost (ATC), we need to calculate the Total Cost (TC) and then divide it by the number of units produced.

Total Cost (TC) = Total Variable Cost (TVC) + Total Fixed Cost (TFC)
TC = $10,000 + $25,000
TC = $35,000

Average Total Cost (ATC) = Total Cost (TC) / Quantity
ATC = $35,000 / 500
ATC = $70

So, the firm's ATC is ​$70.
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