-Figure 7-6 shows the total cost for six different levels of output for a particular firm.What is the average total cost (ATC)of producing four units of output?
A)$2,600
B)$200
C)$650
D)$50
E)$10,400

Question

-Figure 7-6 shows the total cost for six different levels of output for a particular firm.What is the average total cost (ATC)of producing four units of output?
A)$2,600 
B)$200 
C)$650 
D)$50 
E)$10,400

Quizplus · Accepted Answer

The average total cost (ATC) is calculated by dividing the total cost by the number of units produced. If the total cost for four units is $2,600, then ATC = $2,600 / 4 = $650.

-Figure 7-6 Shows the Total Cost for Six Different Levels