Exhibit 22-3

-Refer to Exhibit 22-3.What is the average total cost of producing 45 units of output?

Question

Exhibit 22-3
 
-Refer to Exhibit 22-3.What is the average total cost of producing 45 units of output?

Quizplus · Accepted Answer

To find the average total cost of producing 45 units of output, we look at the ATC curve and find the point where output level is 45. We then draw a line from that point to the ATC axis and read the value on the axis which represents the ATC at that output level. In this case, the ATC is approximately $24.44 at an output of 45 units. Therefore, the answer is B.

Exhibit 22-3 -Refer to Exhibit 22-3.What Is the Average Total Cost of Average