-Refer to Table 7-7. What is the average total cost of production when the firm produces 120 lanterns?
A) $1680
B) $72
C) $14
D) $12.3

Question

Quizplus · Accepted Answer

To find the average total cost of production when the firm produces 120 lanterns, we can look at the row that corresponds to 120 lanterns. We see that the total cost is $1680 and the quantity produced is 120, so the average total cost is $1680 ÷ 120 = $14. Therefore, the best choice is C.