Exhibit 11-8 The table below shows how total cost varies with output in a factory producing watches:
Refer to Exhibit 11-8.If the output equals four watches per week,then the average total cost of producing a watch equals:

Question

Exhibit 11-8 The table below shows how total cost varies with output in a factory producing watches:
 Refer to Exhibit 11-8.If the output equals four watches per week,then the average total cost of producing a watch equals:

Quizplus · Accepted Answer

To find the average total cost (ATC) of producing a watch at an output of 4 watches per week, we need to divide the total cost by the number of watches produced. From the table, we can see that at an output of 4 watches, the total cost is $72. Thus, ATC = $72/4 = $18. Therefore, the best choice is C.

Exhibit 11-8 the Table Below Shows How Total Cost Varies