Asked by Paula marques on Jul 15, 2024
Verified
A business produces 10 pairs of eyeglasses.It incurs $30 in average variable cost and $5 in average fixed cost.The total cost of producing 10 pairs of eyeglasses is:
A) $35.
B) $50.
C) $300.
D) $350.
Average Variable Cost
The cost per unit of variable inputs divided by the total output, showing the variable cost component of producing each unit.
Average Fixed Cost
The fixed costs (costs that do not change with the level of output) of production divided by the quantity of output produced, decreasing as production increases.
Total Cost
The full price of producing goods, encompassing both stable and changeable expenses.
- Comprehend the principles of variable, fixed, and total production costs.
- Ascertain the average rates of fixed, variable, aggregate, and marginal expenditures.
Verified Answer
MN
Myles NuzziJul 21, 2024
Final Answer :
D
Explanation :
The total cost of producing 10 pairs of eyeglasses is calculated by adding the total variable cost and the total fixed cost. The average variable cost is $30 per pair, so for 10 pairs, the total variable cost is $30 * 10 = $300. The average fixed cost is $5 per pair, so for 10 pairs, the total fixed cost is $5 * 10 = $50. Adding these together gives $300 + $50 = $350.
Learning Objectives
- Comprehend the principles of variable, fixed, and total production costs.
- Ascertain the average rates of fixed, variable, aggregate, and marginal expenditures.