You operate a factory that produces beach towels.Your current level of output equals 2,000 towels per week.Your weekly variable cost equals $8,000.If your total cost each week equals $9,000,it follows that:
A) the average variable cost of production equals $2 per towel.
B) the average total cost of production equals $4 per towel.
C) the average total cost of production equals $4.50 per towel.
D) the average total cost of production equals $8 per towel.
Correct Answer:
Verified
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