Exhibit 21-3 Refer to Exhibit 21-3. What is the average total cost of producing 45 units of output?
A)$25.11
B)$24.44
C)$21.11
D)$21.33

Question

Exhibit 21-3  Refer to Exhibit 21-3. What is the average total cost of producing 45 units of output?
A)$25.11 
B)$24.44 
C)$21.11 
D)$21.33

Quizplus · Accepted Answer

To find the average total cost (ATC) of producing 45 units of output, we need to locate the point on the graph where the quantity produced is 45 and then find the corresponding ATC. The point of intersection of the ATC curve and the quantity produced (Q) line at Q=45 is approximately $24.44. Therefore, the answer is (B).