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10 February, 19:09

If average fixed costs equal $60 and average total costs equal $120 when output is 100, the total variable cost must be:

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  1. 10 February, 22:42
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    The average variable cost per unit is 60 cents

    Total costs = fixed costs + (variable costs x number of units)

    Solve where x = variable cost per unit

    $120 = $60 + $100x Subtract 60 from both sides

    60 = 100x Divide by 100

    x = $0.60
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