Exhibit 7-14 Total Cost Curve -In Exhibit 7-14, what is the average cost when producing 10 units of output? A) $0 B) $2.00 C) $4.00 D) $4.60 E) cannot be determined from the total cost curve

Question

Quizplus · Accepted Answer

To find the average cost when producing 10 units of output, we need to look at the point where the total cost curve intersects the vertical line at 10 units of output. This point lies on the curve at a total cost of approximately $46. Thus, the average cost of producing 10 units of output is $4.60 ($46 divided by 10 units). Therefore, the correct choice is D.