Given the Table Below,what Is Average Total Cost When 200

question 72

Multiple Choice

Given the table below,what is average total cost when 200 units of output are produced? $\begin{array}{c}\begin{array}{c}\\\\\text { Output } \\\hline 100 \\200 \\300 \\400 \end{array}\begin{array}{c}\\\text { Total}\\\text { Cost }\\\hline 560\\-\\-\\-\end{array}\begin{array}{c}\text {Total}\\\text {Fixed}\\\text {Cost}\\\hline-\\-\\-\\-\end{array}\begin{array}{c}\text { Total } \\\text { Variable } \\\text { Cost } \\\hline 60\\-\\-\\- \end{array}\begin{array}{lll}\text {Average}\\\text {Fixed}\\\text {Cost}\\\hline -\\-\\-\\-\end{array}\begin{array}{c}\text {Average}\\\text {Variable}\\\text {Cost}\\\hline-\\-\\4.00\\-\end{array}\begin{array}{c}\text {Average}\\\text {Total}\\\text {Cost}\\\hline-\\-\\-\\7.00\end{array}\begin{array}{c}\\\text {Marginal}\\\text {Cost}\\\hline-\\4.00\\-\\-\end{array}\end{array}$

• A)$2.30
• B)$2.50
• C)$4.00
• D)$4.80
• E)none of the above

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Definitions:

Margin

The difference between the selling price of a product and its cost, expressed as a percentage of the selling price.

Turnover

The rate at which inventory or assets of a business are replaced during a given period, often used as a measure of sales or operational efficiency.

Return on Investment

A financial metric used to calculate the profitability of an investment, measuring the gain or loss generated on an investment relative to the amount of money invested.

Investment Opportunity

A chance to use money with the expectation of achieving a return greater than the initial outlay.