Microeconomics Ch. 4.5.2

Which of the following statements about average total cost (ATC) is true?

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

A firm has fixed costs of $5,000. Its average variable cost (AVC) to produce 100 widgets is $3,000, and its average variable cost (AVC) to produce 101 widgets is $2,990. What is the marginal cost (MC) of the 101st widget?

$1,990

At 100 units of output, total cost is $12,000, total variable cost is $7000, and total fixed cost is $5000. Average total cost is

$120.

A firm has fixed costs of $20,000, and its variable cost to produce 10,000 widgets is $30,000. What is the firm's average variable cost to produce 10,000 widgets?

$3

A firm has fixed costs of $5,000. Its average variable cost (AVC) to produce 100 widgets is $3,000, and its average variable cost (AVC) to produce 101 widgets is $2,990. What is the average total cost (ATC) to produce 100 widgets?

$3,050

If, at a certain level of output, a firm has average fixed costs (AFC) of $20 per unit and average variable costs (AVC) of $50 per unit, which of the following statements is true of its average total cost (ATC)?

The average cost is $70 per unit.

If a firm has only variable costs, average total costs and average variable costs are the same.

true

To say that average total cost equals total cost divided by total product is the same as saying that average total cost equals the sum of total fixed cost divided by total product and total variable cost divided by total product.

true