Respuesta :
Answer:
Option (B) is correct.
Explanation:
Given that,
Average total cost of producing cell phones = $20
Current output level = 100 units per week
Fixed cost = $1,200 per week
Average total cost = (Variable cost + Fixed cost) ÷ Number of units
$20 = (Variable cost + $1,200) ÷ 100
$2,000 = (Variable cost + $1,200)
$2,000 - $1,200 = Variable cost
$800 = Variable cost
Total cost = Variable cost + Fixed cost
= $800 + $1,200
= $2,000
Average variable cost:
= Variable cost ÷ Number of units
= $800 ÷ 100
= $8
Average Fixed cost:
= Fixed cost ÷ Number of units
= $1,200 ÷ 100
= $12
Therefore, the correct answer is: Average variable cost is $8.
If the fixed cost is $1,200 per week, the average variable cost is $8.
The average total cost is the sum of average fixed cost and average variable cost.
Average total cost = average fixed cost + average variable cost
Average fixed cost = total fixed cost / total output
$1200 / 100 = $12
Average variable cost = average total cost - average fixed cost
$20 - $12 = $8
A similar question was answered here: https://brainly.com/question/14529487
