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

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

Quizplus · Accepted Answer

To find the average cost, we need to find the total cost of producing 10 units by looking at the vertical axis and then divide it by the quantity of output, which is 10. The total cost of producing 10 units is approximately $46, so the average cost is $4.60.

Exhibit 7-14 Total Cost Curve in Exhibit 7-14, What