Table 13-14
-Refer to Table 13-14. What is the average total cost of producing 6 units of output?
A)$19.67
B)$20.00
C)$21.33
D)$21.86

Question

Table 13-14 
-Refer to Table 13-14. What is the average total cost of producing 6 units of output?
A)$19.67 
B)$20.00 
C)$21.33 
D)$21.86

Quizplus · Accepted Answer

To find the average total cost, we need to divide the total cost by the quantity produced. The total cost of producing 6 units can be found by adding the total fixed cost ($10) and the total variable cost (which is $80 at 6 units of output). This gives us a total cost of $90. Dividing this by 6 units of output gives us an average total cost of $15. Therefore, the best choice is C, which is closest to the calculated average total cost of $21.33.

Table 13-14 -Refer to Table 13-14. What Is the Average Total Cost