A firm's average total cost is $100, its average variable cost is $90, and its total fixed cost is $1000. What is the output?

I'm not sure how to figure this one out. Any help appreciated.

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- Jun 17th 2007, 01:53 PMwvmcanelly@cableone.netHelp with output problem
A firm's average total cost is $100, its average variable cost is $90, and its total fixed cost is $1000. What is the output?

I'm not sure how to figure this one out. Any help appreciated. - Jun 17th 2007, 02:13 PMCaptainBlack
- Jun 17th 2007, 02:24 PMJhevon

Do you know the formulas?

Let be total fixed cost

Let be total cost

Let be total variable cost

Let be quantity produced (output)

Let be average total cost

Let be average fixed cost

Let be avereage variable cost

We have the formula:

if we divide everything by we get,

but when we divide by , what we are actually finding are the average costs, so

we are given the and we want to find

Now, as i said before

so

But we don't know the , so let's use formula (3) to find it

So finally,

EDIT: Beaten by CaptainBlack...yet again! Plus his way is a lot shorter. He's not the Captain for nothing