A yoga studio charges a $150$150 yearly fee for membership plus $12$12 for each class

Economics Dec 07, 2020

A yoga studio charges a $150$150 yearly fee for membership plus $12$12 for each class. What is the average total cost per class if a studio member takes 100100 classes per year?

Expert Solution

The yearly total cost model will take the form:

c=a+bxc=a+bx

And the average total cost is equal to:

atc=cxatc=ax+batc=cxatc=ax+b

Where xx is the number of classes, bb is the charge per class and aa is the annual membership charge.

If a yoga studio charges $150 yearly membership fee plus $12 for each class, nd studio members bring in 100 classes each year, then the yearly average cost per class is equal to:

atc=150100+12atc=$13.50atc=150100+12atc=$13.50

The average total cost is equal to:

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