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QTC ATC TVC AVC AFC MC MR 0 20 0 000 1 25 2 29 14.5 20 4.5 12 6.66667 3.75 4 35

ID: 1217067 • Letter: Q

Question

QTC ATC TVC AVC AFC MC MR 0 20 0 000 1 25 2 29 14.5 20 4.5 12 6.66667 3.75 4 35 8.75 58 20 6 46 2598 4.33 3.33333 6 53 7.57 32.97285714 8 60 97.564797 2.22222 8 10 78 40 5 2.57 5.8 27. What is the Total Cost at 3 units? a. 29 b. 32 c. 35 d. 40 28. What is the Total Cost at 5 units? a. 29 b. 32 c. 35 d. 40 29. What is the Average Total Cost at 3 units? a. 7.5 b. 10.67 c. 7.67 d. 7.8 30. What is the Average Total Cost at 6 units? a. 7.5 b. 10.67 c. 7.67 d. 7.8 31. What is the Average Total Cost at 8 units? a. 7.5 b. 10.67 c. 7.67 d. 7.8

Explanation / Answer

Q27. Calculate Total cost at 3 units -

TVC at 3 units = 12

AFC at 3 units = 6.6667

TFC at 3 units = AFC at 3 units * 3 = 6.6667 * 3 = 20

Total cost at 3 units = TVC at 3 units + TFC at 3 units = 12 + 20 = 32

The Total cost at 3 units is 32.

Hence, the correct answer is option (b).

Q28. Calculate Total Cost at 5 units -

ATC at 5 units = 8

Total cost at 5 units = ATC at 5 units * 5 = 8 * 5 = 40

The Total cost at 5 units is 40.

Hence, the correct answer is option (d).

Q29. Calculate the Average Total Cost at 3 units -

Total Cost at 3 units = 32

ATC at 3 units = Total cost at 3 units/3 = 32/3 = 10.67

The average total cost at 3 units is 10.67

Hence, the correct answer is option (b).

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