The total cost (TC) of producing computer software diskettes (Q) is given as: What is the average total cost?
A) 500
B) 5Q
C) 5
D) 5 + (200/
E) none of the above

Question

The total cost (TC) of producing computer software diskettes (Q) is given as:  What is the average total cost?
A) 500 
B) 5Q 
C) 5 
D) 5 + (200/
E) none of the above

Quizplus · Accepted Answer

The formula for average total cost (ATC) is TC/Q. From the given formula, we can see that TC = 5Q + 200. Substituting this in the ATC formula, we get ATC = (5Q + 200)/Q = 5 + (200/Q). Therefore, the correct answer is D.

The Total Cost (TC) of Producing Computer Software Diskettes (Q)