If the total cost function of a product is C = 10,000 + 25Q, find the average cost of production of 8000 units.

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26.25

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Solution

The correct option is B 26.25
The total cost for 8000 units is = 10,000 + 25*8000
= 210,000
ATC = TC/Q
= 210000/8000
= 26.25

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If the total cost function of a product is C = 10,000 + 25Q, find the average cost of production of 8000 units.

The correct option is B 26.25The total cost for 8000 units is = 10,000 + 25*8000 = 210,000ATC = TC/Q = 210000/8000 = 26.25

The correct option is B 26.25
The total cost for 8000 units is = 10,000 + 25*8000
= 210,000
ATC = TC/Q
= 210000/8000
= 26.25