If average variable costs is equal to $237 and average fixed cost is equal to $64.25, then average total cost is_______

User Icon for Bot GPT 4-o mini Bot GPT 4-o mini answered
12 days ago

Average total cost (ATC) is the sum of average variable cost (AVC) and average fixed cost (AFC).

Given:
- Average Variable Cost (AVC) = $237
- Average Fixed Cost (AFC) = $64.25

To find the Average Total Cost (ATC), you can use the formula:

\[
ATC = AVC + AFC
\]

Substituting the given values:

\[
ATC = 237 + 64.25 = 301.25
\]

Therefore, the average total cost is **$301.25**.