With fixed costs of $200, a firm has average total costs of $5 and average variable costs of $3. its output is:_____.
a. need more information
b. 40 units.
c. 100 units.
d. 66.67 units.

Respuesta :

The Output is 100 units

How do you find the average total cost from variable and fixed costs?

The formula for calculating average total cost is:

(Total fixed costs + total variable costs) / number of units produced = average total cost.

(Total fixed costs + total variable costs)

New cost - old cost = change in cost.

New quantity - old quantity = change in quantity.

  • The average total cost is the per-unit cost of the number of products that are made.
  • This information is integral for making any decisions regarding product pricing.
  • The product must be priced above the average total cost for the company to be profitable.

The average total costs include both fixed and variable costs.

Fixed costs are expenses that are necessary for production but which don't change based on the number of products the company is producing.

To learn more about Average sum, refer

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