relationship between costs\nfor the following questions assume the fixed costs are $300 and variable costs…

relationship between costs\nfor the following questions assume the fixed costs are $300 and variable costs are $900. you produced 50 bushels of apples. hint: average cost = total cost / number of units\na. the total cost would then be $ type your answer.\nb. the average total cost was $ type your answer.\nc. the average variable costs is $ type your answer.\nd. the average fixed cost is $ type your answer.\ne. if you increase your production by 5 bushels, and your total cost increases by $60, your marginal cost is $ type your answer.

relationship between costs\nfor the following questions assume the fixed costs are $300 and variable costs are $900. you produced 50 bushels of apples. hint: average cost = total cost / number of units\na. the total cost would then be $ type your answer.\nb. the average total cost was $ type your answer.\nc. the average variable costs is $ type your answer.\nd. the average fixed cost is $ type your answer.\ne. if you increase your production by 5 bushels, and your total cost increases by $60, your marginal cost is $ type your answer.

Answer

Explanation:

Step1: Calculate total cost

Total cost = Fixed cost + Variable cost. Given fixed cost = $300 and variable cost = $900, so total cost = $300 + $900=$1200.

Step2: Calculate average total cost

Average total cost = Total cost / Number of units. Total cost = $1200 and number of units = 50. So average total cost = $\frac{1200}{50}=24$.

Step3: Calculate average variable cost

Average variable cost = Variable cost / Number of units. Variable cost = $900 and number of units = 50. So average variable cost = $\frac{900}{50}=18$.

Step4: Calculate average fixed cost

Average fixed cost = Fixed cost / Number of units. Fixed cost = $300 and number of units = 50. So average fixed cost = $\frac{300}{50}=6$.

Step5: Calculate marginal cost

Marginal cost is the change in total cost divided by the change in quantity. Change in total cost = $60 and change in quantity = 5. So marginal cost = $\frac{60}{5}=12$.

Answer:

A. 1200 B. 24 C. 18 D. 6 E. 12