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AP® Microeconomics

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Jack White's Yogurt

APMICR-MEWZ5Z

Jack White’s Frozen Delights is an ice cream and frozen yogurt shop that specializes in exotic flavors.

When producing 10 units of Caribbean Clementine Frozen Yogurt, its Average Variable Cost (AVC) is \$22, its Average Fixed Cost (AFC) is \$5, and its Marginal Cost (MC) is \$30.

Which of the following is TRUE?

A

Jack’s Average Total Cost (ATC) is $35.

B

Jack’s Average Total Cost (ATC) is $57.

C

Jack’s total cost is $270.

D

Jack’s total cost is $30.

E

Jack’s total cost is $300.