-The table above shows a total product schedule.Suppose that labor costs $20 per worker and fixed costs are $60.The average total cost of producing 80 units equals ________ per unit.
A) $0.75
B) $1.00
C) $1.75
D) $60
E) $0.25

Question

-The table above shows a total product schedule.Suppose that labor costs $20 per worker and fixed costs are $60.The average total cost of producing 80 units equals ________ per unit.
A) $0.75 
B) $1.00 
C) $1.75 
D) $60 
E) $0.25

Quizplus · Accepted Answer

To calculate the average total cost (ATC) of producing 80 units, we need to know the total cost, which includes both variable costs (like labor) and fixed costs. Without the table, we can't calculate the exact labor cost for 80 units, but we know labor costs $20 per worker. Assuming the labor cost for 80 units can be determined, we add the fixed cost of $60 to this labor cost to get the total cost. Then, we divide the total cost by the quantity (80 units) to find the ATC per unit. Since the exact numbers are missing due to the lack of the table, the correct answer is based on the understanding of how to calculate ATC rather than specific calculations.

-The Table Above Shows a Total Product Schedule