Refer to the Following -What Is Average Total Cost When 200 Units of Output

question 18

Multiple Choice

Refer to the following:

$\begin{array}{ccccccccc} & & \text { Total } & \text { Total } & \text { Average } & \text { Average } & \text { Average } & \\& \text { Total } & \text { Fixed } & \text { Variable } & \text { Fixed } & \text { Variable } & \text { Total } & \text { Marginal } \\\text { Output } & \text { Cost } & \text { Cost } & \text { Cost } & \text { Cost } & \text { Cost } & \text { Cost } & \text { Cost }\\\hline 100&560&-&60&-&-&-&-\\200&-&-&-&-&-&-&4.00\\300&-&-&-&-&4.00-&-&-\\400&-&-&-&-&-&7.00&-\\\end{array}$
-What is average total cost when 200 units of output are produced?

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

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Definitions:

Long Run

A period in which all factors of production and costs are variable, allowing firms to adjust to changes in the market or economic conditions.

Demand

The quantity of a product or service that consumers are willing and able to buy at various prices during a specified period of time.

Industry Entry

The process of a new competitor or firm entering into an industry or market.

Consumer Incomes

The total earnings received by consumers, including wages, salaries, benefits, and income from investments, influencing their purchasing power and consumption patterns.