Suppose the total cost of producing 5 comma 000 tennis balls is $50 comma 000 , and the fixed cost is $10 comma 000. What is the variable cost? $ nothing. (Enter a numeric response using an integer.) When output is 5 comma 000 , what is the average variable cost? $ nothing. (Enter a numeric response using a real number rounded to two decimal places.) When output is 5 comma 000 , what is the average fixed cost? $ nothing. (Enter a numeric response using a real number rounded to two decimal places.)

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Business

Aydan

23 June, 15:42

Suppose the total cost of producing 5 comma 000 tennis balls is $50 comma 000 , and the fixed cost is $10 comma 000. What is the variable cost? $ nothing. (Enter a numeric response using an integer.) When output is 5 comma 000 , what is the average variable cost? $ nothing. (Enter a numeric response using a real number rounded to two decimal places.) When output is 5 comma 000 , what is the average fixed cost? $ nothing. (Enter a numeric response using a real number rounded to two decimal places.)

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Jeramiah Moses · Answer 1

Answer:The variable cost = $40,000, The average variable cost = $8, The average fixed cost = $2

Explanation: To calculate Variable Cost

TC = FC + VC

Therefore, VC = TC - FC

$50,000-$10,000

=$40,000

To calculate average variable cost

AVC/Q

= $40,000/$5,000

= $8

To calculate average fixed cost

TFC/Q

$10,000/$5,000

=$2