Question

The table below shows the total cost of cleaning classrooms:
Classrooms cleaned per evening 0 3 7 12 16 17
Total cost $100 $200 $300 $400 $500 $600


1. What is the average fixed cost of cleaning three classrooms?
2. What is the average variable cost of cleaning three classrooms?
3. What is the average fixed cost of cleaning seven classrooms?
4. What is the average variable cost of cleaning seven classrooms?
5. What is the marginal cost of cleaning the seventeenth classroom?
6. What is the average total cost of cleaning twelve classrooms?

Answer 1

1. The average fixed cost of cleaning three classrooms is $100.

2. To find the average variable cost, you subtract the fixed cost from the total cost. So, for cleaning three classrooms: $200 (total cost) - $100 (fixed cost) = $100 (average variable cost).

3. The average fixed cost of cleaning seven classrooms is $300.

4. To find the average variable cost for cleaning seven classrooms: $400 (total cost) - $300 (fixed cost) = $100 (average variable cost).

5. The marginal cost is the additional cost of producing one more unit. In this case, the marginal cost of cleaning the seventeenth classroom is $100 (since it increases from $500 to $600).

6. The average total cost of cleaning twelve classrooms is $400 ($400 total cost / 12 classrooms).