Suppose the total cost of producing
15 comma 00015,000
tennis balls is
$50 comma 00050,000,
and the fixed cost is
$20 comma 00020,000.
Part 2
The variable cost is
$enter your response here.
(Enter your response as a whole number.)
Part 3
When output is
15 comma 00015,000,
the average variable cost is
$enter your response here.
(Enter
your response rounded to two decimal places.)
Part 4
When output is
15 comma 00015,000,
the average fixed cost is
$enter your response here.
(Enter
your response rounded to two decimal places.)
Part 5
Assuming that the cost curves have the usual shape, the dollar difference between average total cost and average variable cost
▼
increases
remains constant
decreases
as output increases.