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Answer to Question #80712 in Economics for Anthea Willenburg
Question #80712
If the average fixed cost and average variable cost for producing 6 units of shoes are R64 and R16 respectively, what is the total cost at this level of output?
Expert's answer
If Q = 6 units, AFC = R64, AVC = R16, then the total cost at this level of output is:
TC = ATC*Q = (AFC + AVC)*Q = (64 + 16)*6 = R480.
TC = ATC*Q = (AFC + AVC)*Q = (64 + 16)*6 = R480.
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