Answer:
b. average total cost of 21 pairs of boots is $23.
Explanation:
At Bert's Bootery, the total cost of producing twenty pairs of boots is $400. The marginal cost of producing the twenty-first pair of boots is $83. We can conclude that the
a. average variable cost of 21 pairs of boots is $23.
b. average total cost of 21 pairs of boots is $23.
c. average total cost of 21 pairs of boots is $15.09.
d. marginal cost of the 20th pair of boots is $20.
Remember that the total cost of producing good is the production cost plus the variable costs, the marginal cost of the 21st pair of boots includes variable and production costs, so if you divide the 483 by 21 the average total cost of producing 21 pairs of boots would be $23 dollars.
