Use the Table Below to Answer the Following Question What Is the Average Total Cost at an Output Level

question 183

Multiple Choice

Use the table below to answer the following question. $$\begin{array} { | c | c | c | } \hline \begin{array} { c } \text { Units of } \\\text { Output }\end{array} & \begin{array} { c } \text { Total Fixed } \\\text { Cost (dollars) }\end{array} & \begin{array} { c } \text { Total Variable } \\\text { Cost (dollars) }\end{array} \\\hline 1 & 1,000 & 1,200 \\2 & 1,000 & 2,400 \\3 & 1,000 & 3,600 \\4 & 1,000 & 5,000 \\5 & 1,000 & 6,600 \\\hline\end{array}$$ What is the average total cost at an output level of four units?

• A) $1,200.
• B) $1,400.
• C) $1,500.
• D) $2,000.

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