Answer to Question #227012 in Microeconomics for Rifa

Question

Fixed cost is 400, firm's average total cost is 3 , and average variable cost is 2.50 it's output?

Answer 1

$AFC=\frac{FC}{Q}$

$=\frac{400}{Q}$

$ATC=AFC+AVC$

$3=\frac{400}{Q}+2.50$

$Q=\frac{400}{0.50}$

$Q=800$