Use the table below to answer the following question.

What is the average total cost at an output level of four units?

Question

Use the table below to answer the following question.

What is the average total cost at an output level of four units?

Quizplus · Accepted Answer

To find the average total cost at an output level of four units, we need to look at the row where quantity equals four. The total cost at four units is $6,000, and the corresponding total variable cost is $4,000. Therefore, the average total cost is ($6,000 / 4) = $1,500. Choice C is the correct answer.

Use the Table Below to Answer the Following Question