Use the table below to answer the following question. $$\begin{array} { | c | c | c | }
\hline \begin{array} { c }
\text { Units of } \
\text { Output }
\end{array} & \begin{array} { c }
\text { Total Fixed } \
\text { Cost (dollars) }
\end{array} & \begin{array} { c }
\text { Total Variable } \
\text { Cost (dollars) }
\end{array} \
\hline 1 & 1,000 & 1,200 \
2 & 1,000 & 2,400 \
3 & 1,000 & 3,600 \
4 & 1,000 & 5,000 \
5 & 1,000 & 6,600 \
\hline
\end{array}$$ What is the average total cost at an output level of four units?

Question

Use the table below to answer the following question. $$\begin{array} { | c | c | c | } 
\hline \begin{array} { c } 
\text { Units of } \
\text { Output }
\end{array} & \begin{array} { c } 
\text { Total Fixed } \
\text { Cost (dollars) }
\end{array} & \begin{array} { c } 
\text { Total Variable } \
\text { Cost (dollars) }
\end{array} \
\hline 1 & 1,000 & 1,200 \
2 & 1,000 & 2,400 \
3 & 1,000 & 3,600 \
4 & 1,000 & 5,000 \
5 & 1,000 & 6,600 \
\hline
\end{array}$$ What is the average total cost at an output level of four units?

Quizplus · Accepted Answer

The average total cost is calculated by adding total fixed cost and total variable cost, then dividing by the number of units. For four units: (1,000 + 5,000) / 4 = 1,500.

Use the Table Below to Answer the Following Question What Is the Average Total Cost at an Output Level