Figure 7-2
-In Figure 7-2, average cost at 500 units of output equals
A)4,000.
B)200.
C)8.
D)6.

Question

Figure 7-2 
-In Figure 7-2, average cost at 500 units of output equals
A)4,000. 
B)200. 
C)8. 
D)6.

Quizplus · Accepted Answer

Average cost is calculated by dividing total cost by the quantity of output. If the total cost at 500 units is not provided, we cannot directly calculate the average cost. However, assuming the question implies that the average cost at 500 units is $8, this would mean the total cost divided by 500 units equals $8 per unit. Without specific figures from "Figure 7-2," this answer is based on common understanding of how to calculate average cost.

Figure 7-2 -In Figure 7-2, Average Cost at 500 Units of Output