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 $500 and its variable cost of 50 units is $800. What is average total cost at 50 units?

Show solution

ATC = ($500 + $800) ÷ 50 = $26.

Problem 2.

A firm's fixed cost is $190 and its variable cost of 50 units is $1050. What is average total cost at 50 units?

Show solution

ATC = ($190 + $1050) ÷ 50 = $24.8.

Problem 3.

A firm's fixed cost is $580 and its variable cost of 25 units is $250. What is average total cost at 25 units?

Show solution

ATC = ($580 + $250) ÷ 25 = $33.2.

Problem 4.

A firm's fixed cost is $240 and its variable cost of 40 units is $1000. What is average total cost at 40 units?

Show solution

ATC = ($240 + $1000) ÷ 40 = $31.

Problem 5.

A firm's fixed cost is $270 and its variable cost of 10 units is $240. What is average total cost at 10 units?

Show solution

ATC = ($270 + $240) ÷ 10 = $51.

Problem 6.

A firm's fixed cost is $260 and its variable cost of 20 units is $220. What is average total cost at 20 units?

Show solution

ATC = ($260 + $220) ÷ 20 = $24.