The table below shows how total cost varies with output in a factory producing watches.
TABLE 7-4

-Refer to Table 7-4. If the output equals four watches per week, then what is the average total cost of producing a watch?
A) $3
B) $5.50
C) $18
D) $72

Question

The table below shows how total cost varies with output in a factory producing watches.
TABLE 7-4
 
-Refer to Table 7-4. If the output equals four watches per week, then what is the average total cost of producing a watch?
A) $3 
B) $5.50 
C) $18 
D) $72

Quizplus · Accepted Answer

At an output of four watches per week, the total cost is $72 (from the given table, assuming it shows this information). To find the average total cost (ATC), divide the total cost by the quantity produced: $72 / 4 watches = $18 per watch.

The Table Below Shows How Total Cost Varies with Output