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almond37
2 months ago
14

n order to produce 100 oatmeal cookies, GoodieCookieCo incurs an average total cost of $0.25 per cookie. The company's marginal

cost is constant at $0.10 for all oatmeal cookies produced. The total cost to produce 50 oatmeal cookies is
Mathematics
1 answer:
PIT_PIT [12.4K]2 months ago
6 0

Answer:

$20

Step-by-step explanation:

With an average total cost of producing 100 oatmeal cookies being $0.25

Total Cost (TC) = 0.25 x 100 = 25

Marginal Cost (MC) equals $0.10

The Total Variable Cost (TVC) to create 100 cookies = Marginal Cost times 100 = 10

Total Fixed Cost (TFC) for generating 100 cookies = TC minus TVC = 25 minus 10 = $15

Total expenditure to produce 50 cookies

=TFC+TVC

=TFC + (MC x 50)

=15+(0.10 x 50)

=15+5

=$20

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