This is the total variable cost to produce 11 units. The question asks for the average total cost per unit at the output level of 11 units. The average total cost at an output level of 11 units is the sum of the total variable cost for 11 units and the total fixed cost for 11 units divided by 11 units.
This is the incremental variable cost of the 11th unit plus the average fixed cost per unit for 11 units. The average total cost at an output level of 11 units is the sum of the total variable cost for 11 units and the total fixed cost for 11 units divided by 11 units.
$125.00 is the incremental variable cost of the 11th unit. The question asks for the average total cost per unit at the output level of 11 units. The average total cost at an output level of 11 units is the sum of the total variable cost for 11 units and the total fixed cost for 11 units divided by 11 units.
Total cost at an output level of 11 units is $1,000 fixed costs plus $250 variable costs, for a total cost of $1,250. The average total cost per unit at that output level is $1,250 divided by 11, or $113.64.
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The average total cost at an output level of 11 units is
