Ask Question
26 June, 03:20

A business produces 10 pairs of eyeglasses. it incurs $30 in average variable cost and $35 in average total cost. the total fixed cost of producing 10 pairs of eyeglasses is:

+3
Answers (1)
  1. 26 June, 06:07
    0
    The average total costs, TC, of the production is equal to the sum of the average variable cost, VC, and the total fixed cost, FC. If we translate this to an equation we derive,

    TC = FC + VC

    To calculate for the value of FC, we simply have to transpose VC to the other side of the equation and we arrive with the equation,

    FC = TC - VC

    Then, we substitute the known values in the given.

    FC = ($35) - ($30)

    FC = $5

    Hence, the total fixed cost of the production is equal to $5.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “A business produces 10 pairs of eyeglasses. it incurs $30 in average variable cost and $35 in average total cost. the total fixed cost of ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers