Question

Tankao makes Bluetooth headphones for mobile devices. When 50 Bluetooth headphones are produced in the short run, the average variable cost is $30. Fixed costs are greater than zero. Therefore, Tankao's average _____ cost is _____. Group of answer choices

Answer 1

Answer: total ; greater than $30

Explanation:

Given the following :

Average variable cost = $30

Fixed cost > 0 ; therfore Average fixed cost > 0

Recall:

Average Total cost = (Average fixed cost + Average variable cost)

Average total cost = ( >0 + $30)

Average total cost = >$30

Therefore, when 50 bluetooths are produced in the short run, the average total cost is greater than $30