According to the table below,what is the average total cost of producing 160 units of output?
$$\begin{array} { | l | l | l |}
\hline \mathbf { Q } & \mathbf { F C } & \mathbf { V C } \
\hline 0 & 1,000 & 0 \
\hline 20 & 1,000 & 350 \
\hline 50 & 1,000 & 700 \
\hline 90 & 1,000 & 1,050 \
\hline 125 & 1,000 & 1,400 \
\hline 145 & 1,000 & 1,750 \
\hline 160 & 1,000 & 2,100 \
\hline
\end{array}$$
A) 12.98
B) 16.31
C) 22.04
D) 19.38

Question

According to the table below,what is the average total cost of producing 160 units of output?
$$\begin{array} { | l | l | l |} 
\hline \mathbf { Q } & \mathbf { F C } & \mathbf { V C } \
\hline 0 & 1,000 & 0 \
\hline 20 & 1,000 & 350 \
\hline 50 & 1,000 & 700 \
\hline 90 & 1,000 & 1,050 \
\hline 125 & 1,000 & 1,400 \
\hline 145 & 1,000 & 1,750 \
\hline 160 & 1,000 & 2,100 \
\hline
\end{array}$$
A) 12.98
B) 16.31
C) 22.04
D) 19.38

Quizplus · Accepted Answer

The average total cost (ATC) for producing 160 units is calculated by adding the fixed cost (FC) and variable cost (VC) for 160 units and then dividing by the quantity (Q). For 160 units, FC = $1,000 and VC = $2,100, so the total cost is $3,100. Dividing by 160 units gives an ATC of $19.38.

According to the Table Below,what Is the Average Total Cost