Asked by ????????? ?????? on May 17, 2024

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Answer the question on the basis of the following cost data: Output‾12345678AverageFixedCost ‾$50.0025.0016.6712.5010.008.377.146.25AverageVariableCost ‾$100.0080.0066.6765.0068.0073.3380.0087.50\begin{array}{c}\begin{array}{c}\\\\\underline{\text {Output}}\\1 \\2 \\3 \\4 \\5 \\6 \\7 \\8\end{array}\begin{array}{c}\text {Average}\\\text {Fixed}\\\underline{\text {Cost }}\\\$ 50.00 \\25.00 \\16.67 \\12.50 \\10.00 \\8.37 \\7.14 \\6.25\end{array}\begin{array}{c}\text {Average}\\\text {Variable}\\\underline{\text {Cost }}\\ \$ 100.00 \\80.00 \\66.67 \\65.00 \\68.00 \\73.33 \\80.00 \\87.50\end{array}\end{array}Output12345678AverageFixedCost $50.0025.0016.6712.5010.008.377.146.25AverageVariableCost $100.0080.0066.6765.0068.0073.3380.0087.50
Refer to the data.Total fixed cost is:

A) $6.25.
B) $100.00.
C) $150.00.
D) $50.00.

Average Fixed Cost

The constant expenses associated with production, which remain unchanged regardless of output levels, divided by the output quantity.

Average Variable Cost

The total variable costs divided by the quantity of output produced, reflecting the cost for each unit excluding fixed costs.

  • Identify and sum up the total charges, average constant costs, average changeable costs, and boundary costs presented in the data.
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AN
Annie NavarroMay 20, 2024
Final Answer :
D
Explanation :
Fixed costs do not change with the level of output. The average fixed cost at an output of 1 is $50.00, indicating that the total fixed cost is $50.00, as it remains constant regardless of output level.