If Average Total Costs Are $40 and Average Variable Cost

question 147

Multiple Choice

If average total costs are $40 and average variable cost are $20 at 10 units of output and the marginal cost of the 11^th unit is $30,what is the average total cost of 11 units?

• A) $23.00
• B) $20.09
• C) $30.00
• D) $39.09

---

Definitions:

Selling Price

The price at which a product or service is offered to the buyer.

Retailer

A business entity that sells goods or services directly to consumers, acting as the final link in the supply chain.

Profit (Loss)

The financial result of operations, where profit indicates revenue exceeds expenses, and loss indicates expenses exceed revenue.

Sale Price

The final price of a product or service after any discounts or promotions have been applied.