A firm incurred the following costs in production. Use the information in the table to answer the question below. Output (bags of rice 0 10 20 30 40 50 60 T...
Question 1 Report
A firm incurred the following costs in production. Use the information in the table to answer the question below.
| Output (bags of rice |
0 | 10 | 20 | 30 | 40 | 50 | 60 |
| Total Cost ($) | 100 | 200 | 300 | 380 | 440 | 520 | 600 |
The average cost of producing 40 bags of rice is_____
Answer Details
The average cost of producing 40 bags of rice is $11.
To find the average cost, we divide the total cost by the output. In this case, the total cost of producing 40 bags of rice is $440. Therefore, the average cost of producing 40 bags of rice is:
$440 / 40 = $11
So the answer is $11.
It's important to note that the average cost is calculated by taking the total cost and dividing it by the output, not by taking the average of the total costs for each level of output. This is because the cost per unit of output can change as production levels increase or decrease, and taking the average of the total costs for each level of output could result in an inaccurate average cost.
Download The App On Google Playstore
Everything you need to excel in your exams
Personalized AI Learning Chat Assistant
200,000+ Exam Questions Across IGCSE, JAMB, WAEC & NECO
Over 3,900 Lesson Notes
Offline Support - Learn Anytime, Anywhere
Green Bridge Timetable
Literature Summaries & Potential Questions
Track Your Performance & Progress
In-depth Explanations for Comprehensive Learning