A firm has fixed costs of $400, average total costs of $3 and average variable costs of $2.50. The output of the firm is _____________.
Question
Solution 1
To find the output of the firm, we first need to understand the relationship between average total costs (ATC), average variable costs (AVC), and average fixed costs (AFC).
The formula is: ATC = AVC + AFC
We know that ATC is 2.50. We can rearrange the formula to find AFC:
AFC = A Knowee AI is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI is a powerful AI-powered study tool designed to help you to solve study problem.
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