Average total cost practice problems

Microeconomics Unit 3. Try each one, then open the worked solution. The Credit Sprint app generates unlimited new versions with fresh numbers.

Problem 1.

A firm's fixed cost is $250 and its variable cost of 25 units is $475. What is average total cost at 25 units?

Show solution

ATC = ($250 + $475) ÷ 25 = $29.

Problem 2.

A firm's fixed cost is $320 and its variable cost of 50 units is $1450. What is average total cost at 50 units?

Show solution

ATC = ($320 + $1450) ÷ 50 = $35.4.

Problem 3.

A firm's fixed cost is $350 and its variable cost of 10 units is $100. What is average total cost at 10 units?

Show solution

ATC = ($350 + $100) ÷ 10 = $45.

Problem 4.

A firm's fixed cost is $100 and its variable cost of 20 units is $340. What is average total cost at 20 units?

Show solution

ATC = ($100 + $340) ÷ 20 = $22.

Problem 5.

A firm's fixed cost is $220 and its variable cost of 25 units is $500. What is average total cost at 25 units?

Show solution

ATC = ($220 + $500) ÷ 25 = $28.8.

Problem 6.

A firm's fixed cost is $440 and its variable cost of 40 units is $520. What is average total cost at 40 units?

Show solution

ATC = ($440 + $520) ÷ 40 = $24.