$\begin{array}{ccccccc}
&Variable &Total&&&& Marginal \
\text { Output } & \text { Cost } & \text { Cost } & \text { AFC } & \text { AVC } & \text { ATC } & \text { Cost } \
1 & 200 & & & & & \
2 & 300 & & & & & \
3 & 500 & & & & & \
4 & 800 & & & &
\end{array}$
-At an output of 4,ATC is
A)$200.
B)$225.
C)$250.
D)$400.
E)$500.

Question

Quizplus · Accepted Answer

ATC (Average Total Cost) is calculated by dividing the total cost by the quantity of output. Given the variable cost at an output of 4 is $800, and assuming the fixed cost is the variable cost at an output of 1 ($200), the total cost at an output of 4 is $800 (variable cost) + $200 (fixed cost) = $1000. Therefore, ATC = $1000 / 4 = $250.

-At an Output of 4,ATC Is A)$200

-At an Output of 4,ATC Is
A)$200