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10 November, 06:23

Consider the following: Alex is one of the leading widget producers in the country. His total costs amount to $10,000, total fixed costs are $2,000, and average variable costs are $400. How many widgets is Alex producing

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  1. 10 November, 10:09
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    The correct answer is 20 units.

    Explanation:

    According to the scenario, the given data are as follows:

    Total cost = $10,000

    Total fixed cost = $2,000

    Average variable cost = $400

    So, Total variable cost = Total cost - Total fixed cost

    = $10,000 - $2,000 = $8,000

    So, we can calculate the total number of widgets producing by using following formula:

    Units producing = Total variable cost : average variable cost

    = $8,000 : $400

    = 20 units
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Home » Business » Consider the following: Alex is one of the leading widget producers in the country. His total costs amount to $10,000, total fixed costs are $2,000, and average variable costs are $400. How many widgets is Alex producing
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