WAEC - Economics (2024 - No. 20)
The fixed cost of producing 100 units of a good is $600. If the variable cost is $400. the average total cost of one unit of the good is
$4
$6
$8
$10
Explanation
( Average total cost) = ( average fixed cost) + ( average vairable cost)
\(\frac{\text{totalcost}}{\text{quantity}}\) + \(\frac{\text{(total variable cost)}}{\text{quantity}}\)
\(\frac{$600}{100}\) + \(\frac{$400}{100}\)
= $6 + $4 = $10
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