Use the table below to answer the following question.
Average total cost is at a minimum when output is

Question

Use the table below to answer the following question. 
Average total cost is at a minimum when output is

Quizplus · Accepted Answer

The average total cost (ATC) is calculated by dividing the total cost by the quantity produced. Looking at the table, we can see that the ATC reaches its lowest point at 4 units, where it is $4.50. Before 4 units, ATC is increasing, and after 4 units, ATC continues to increase. Therefore, 4 units is the most efficient level of output, and the best choice for minimizing average total cost.

Use the Table Below to Answer the Following Question