Refer to Figure 8.3.What is the average cost of producing 290 units of output?
A) $9
B) $2,500
C) $8.62
D) $7.77

Question

Refer to Figure 8.3.What is the average cost of producing 290 units of output? 
A) $9 
B) $2,500 
C) $8.62 
D) $7.77

Quizplus · Accepted Answer

To find the average cost of producing 290 units of output, we need to look at the intersection of the quantity of 290 on the x-axis and the Average Total Cost (ATC) curve. From the graph, we can see that the ATC at 290 units is approximately $8.62. Therefore, the correct answer is (C) $8.62.