When the average total cost is $16 and the total cost is $800,then the number of units the firm is producing is
A) impossible to determined with the information given.
B) 12,800.
C) 784.
D) 50.

Question

Quizplus · Accepted Answer

Average total cost (ATC) = Total cost / Number of units produced
Given, ATC = $16 and Total cost = $800
Therefore, 16 = 800 / number of units produced
Number of units produced = 800 / 16 = 50. 
Hence, the correct answer is D) 50.

When the Average Total Cost Is $16 and the Total