A factory produces 1,000 MP3 players per week. AVC = $10, FC = 5,000, the factory TC equals:
A. 15
B. 5,005
C. 6,000
D. 15,000
E. 50,000
D. 15,000
ATC = (TC / Q) 15 = (5,000 + x) / 1,000 3rd step
ATC: AVC + AFC ATC: 10 + 5 = 15 2nd step
AFC: FC / Q AFC: 5,000 / 1,000 = 5 1st step
Economics
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