True or false? At businessman Adams CD production plant, average fixed cost per cd is $1.1 and average total cost are 2.88. adams average variable cost must be 1.7 per cd

Answer 1

That's almost true. Average total cost equals the average fixed cost plus the average variable cost. Written in simpler terms:

ATC = AFC+AVC

So here:

2.8 = 1.1+1.7

So ATC is off by 0.08

Then 1.1+1.7 = 2.8 so its close by not exactly the ATC