When the average total cost is $16 and the total cost is $800, then the number of units the firm is producing is

Question

Quizplus · Accepted Answer

The formula for average total cost is:

Average total cost = Total cost / Quantity

We are given that the average total cost is $16 and the total cost is $800. Substituting these values in the formula, we get:

$16 = $800 / Quantity

Solving for Quantity, we get:

Quantity = $800 / $16 = 50

Therefore, the firm is producing 50 units. The answer is D.

When the Average Total Cost Is $16 and the Total