If an eyeglass business produces 10 pairs of eyeglasses and incurs $30 in average variable cost and $5 in average fixed cost, then average total cost is:
A)$30.
B)$35.
C)$50.
D)$300.

Question

Quizplus · Accepted Answer

Average total cost (ATC) is the sum of average variable cost (AVC) and average fixed cost (AFC):

ATC = AVC + AFC

Given that AFC is $5 and AVC is $30,

ATC = $30 + $5 = $35.

Therefore, the average total cost for producing 10 pairs of eyeglasses is $35. Therefore, the correct answer is B.

If an Eyeglass Business Produces 10 Pairs of Eyeglasses and Incurs