Table 8-3
Table 8-3 shows cost data for Lotus Lanterns,a producer of whimsical night lights.
-Refer to Table 8-3.What is the average total cost of production when the firm produces 120 lanterns?

Question

Table 8-3
  Table 8-3 shows cost data for Lotus Lanterns,a producer of whimsical night lights.
-Refer to Table 8-3.What is the average total cost of production when the firm produces 120 lanterns?

Quizplus · Accepted Answer

The average total cost (ATC) is calculated by dividing the total cost by the quantity produced. If the total cost for producing 120 lanterns is $1,680, then ATC = $1,680 / 120 = $14.

Table 8-3 Table 8-3 Shows Cost Data for Lotus Lanterns,a