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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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  1. 23 June, 17:04
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    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
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