Question
How to find average total cost when you only have output and total cost
Answers
GPT 3.5
To find the average total cost, you need to divide the total cost by the corresponding output.
The formula to calculate average total cost (ATC) is:
ATC = Total Cost / Output
Here's a step-by-step guide on how to find the average total cost:
Step 1: Determine the total cost for a given level of output. Let's say for a certain level of output, the total cost is $10,000.
Step 2: Determine the corresponding output for the total cost. For example, let's assume the output for the $10,000 total cost is 1,000 units.
Step 3: Divide the total cost by the output to find the average total cost. In this case, the ATC would be:
ATC = $10,000 / 1,000 units
ATC = $10 per unit
Therefore, the average total cost for this level of output is $10 per unit.
Repeat these steps for different levels of output to measure the average total cost at different points of production.
The formula to calculate average total cost (ATC) is:
ATC = Total Cost / Output
Here's a step-by-step guide on how to find the average total cost:
Step 1: Determine the total cost for a given level of output. Let's say for a certain level of output, the total cost is $10,000.
Step 2: Determine the corresponding output for the total cost. For example, let's assume the output for the $10,000 total cost is 1,000 units.
Step 3: Divide the total cost by the output to find the average total cost. In this case, the ATC would be:
ATC = $10,000 / 1,000 units
ATC = $10 per unit
Therefore, the average total cost for this level of output is $10 per unit.
Repeat these steps for different levels of output to measure the average total cost at different points of production.