Table 7.7 Table 7.7 shows cost data for Lotus Lanterns, a producer of whimsical night lights.
-Refer to Table 7.7.The average total cost of production when the firm produces 120 lanterns is
A)$1680
B)$72
C)$14
D)$12.3

Question

Table 7.7  Table 7.7 shows cost data for Lotus Lanterns, a producer of whimsical night lights.
-Refer to Table 7.7.The average total cost of production when the firm produces 120 lanterns is
A)$1680 
B)$72 
C)$14 
D)$12.3

Quizplus · Accepted Answer

The average total cost (ATC) is calculated by dividing the total cost by the quantity produced. Without the specific details from Table 7.7, we typically use the formula ATC = TC/Q. Assuming the information provided in the question implies that the total cost for producing 120 lanterns leads to an ATC of $14, this would be the correct calculation based on the given options.

Table 77 Table 7