At Bert's Bootery,the total cost of producing 19 pairs of boots is $4000.The marginal cost of producing the 20th pair of boots is $90.What is the average total cost of 21 pairs of boots
A)$200
B)$201.5
C)$204.50
D)$210.52

Question

Quizplus · Accepted Answer

Average total cost is given by the total cost divided by the quantity. 
Total cost of producing 19 pairs of boots is $4000, so the average total cost for 19 pairs is 4000/19= $210.53 (rounded to two decimal places). 
To find the average total cost for 21 pairs, we need to add the marginal cost of the 20th pair and the 21st pair to the total cost of the first 19 pairs, and then divide by 21. 
Total cost of producing 20 pairs of boots is $4000 + $90 = $4090. 
Total cost of producing 21 pairs of boots is $4090 + $90 = $4180. 
Therefore, the average total cost for 21 pairs of boots is 4180/21= $199.05 (rounded to two decimal places). 
Hence, the answer is C.

At Bert's Bootery,the Total Cost of Producing 19 Pairs of Boots