Average total cost??? Please help?

Question

i m currently working on a project. Now with the information that we are asked to do, i am having tough time finding Average Total Cost. Can you please help

QTY Total Cost Marginal Cost

0 $10 10

10 $90 8

20 $150 3

30 $190 1.33

40 $225 .87

50 $285 1.2

60 $365 1.33

70 $465 1.42

80 $585 1.5

To find ATC ( Average total cost ) --- formula is Total Variable Cost / Quantity Produced..

Since i dont have TVC provided, i am really confused on how to find ATC.

Answer 1

wow , I have no Idea

Answer 2

ATC=AVF+AFC

ATC=TC/Q

FC=10

VC=TC-FC

Q....ATC

..0...X

10...9

20...7.5

30...6.33

40...5.625

50...5.7

60...6.08

70...6.643

80...7.31

Answer 3

20 $150 3 thats a good price plz rate me as best answer

Answer 4

Ahh.. Economics dont you just love it, NOT! I hope this help.

You want to know the Average Total Cost or the Average Variable Cost? The formula for

AVC=Total Variable Costs/Qty

ATC=Total Cost of Producing  units (Qty) / Number of Units (Qty)

Total Cost:

The total cost is simply all the costs incurred in producing a certain number of goods. That question is easy to answer here, as we can just read it off of our chart. So the total cost of producing 20 goods is150 and the total cost of producing 40 goods is 225.

Fixed Cost:

Fixed costs are the costs that are independent of the number of goods you produce, or more simply the costs you incur when you do not produce any goods. We see from our chart that when we produce zero goods our costs are 10. So our fixed cost of production is 10.

Total Variable Costs:

These are just the opposite of fixed costs; these are the costs that do change when we produce more. We calculate the total variable cost of producing 20 units by:

Total Variable Cost of Producing 20units = Total Cost of Producing 20 Units – Total Cost of Producing 0 units.

In your exaple: Then our total variable cost when we produce 20 units is 140 since150-10=140. Similarly our toat variable cost when we produce 40 units is 215 and so on.

Average Total Costs:

Our average total cost is our fixed costs over the number of units we produce. So if we produce20units our formula is:

Average Total Cost of Producing 20 = Total Cost of Producing 20 units / Number of Units

With our data we have an average total cost of producing 20 units of 8, as the total cost of producing 20 units is 150and 150/20= 8. The average total cost of producing 30 units is 190 as 190/30 = 6.