Refer to the table below. The average cost of 4 units of this activity is: $$\begin{array} { | c | c | c | }
\hline \begin{array} { c }
\text { Units of } \
\text { Activity }
\end{array} & \begin{array} { c }
\text { Total } \
\text { Cost }
\end{array} & \begin{array} { c }
\text { Total } \
\text { Benefit }
\end{array} \
\hline 0 & \$ 0 & \$ 0 \
\hline 1 & \$ 30 & \$ 100 \
\hline 2 & \$ 40 & \$ 160 \
\hline 3 & \$ 60 & \$ 190 \
\hline 4 & \$ 100 & \$ 210 \
\hline 5 & \$ 150 & \$ 220 \
\hline 6 & \$ 210 & \$ 225 \
\hline
\end{array}$$

Question

Refer to the table below. The average cost of 4 units of this activity is: $$\begin{array} { | c | c | c | } 
\hline \begin{array} { c } 
\text { Units of } \
\text { Activity }
\end{array} & \begin{array} { c } 
\text { Total } \
\text { Cost }
\end{array} & \begin{array} { c } 
\text { Total } \
\text { Benefit }
\end{array} \
\hline 0 & \$ 0 & \$ 0 \
\hline 1 & \$ 30 & \$ 100 \
\hline 2 & \$ 40 & \$ 160 \
\hline 3 & \$ 60 & \$ 190 \
\hline 4 & \$ 100 & \$ 210 \
\hline 5 & \$ 150 & \$ 220 \
\hline 6 & \$ 210 & \$ 225 \
\hline
\end{array}$$

Quizplus · Accepted Answer

The average cost of 4 units of activity is the total cost of 4 units divided by 4, which is ($100 + $40)/4 = $25. Choosing 4 units yields the highest total benefit at $210, and the cost of $100 is also reasonable compared to choosing 5 or 6 units which have a higher cost but only slightly higher benefits. Therefore, 4 units is the best choice.

Refer to the Table Below A)$20 B)$25 C)$30 D)$40

Refer to the Table Below A)$20
B)$25
C)$30
D)$40