When the Average Total Cost Is $16 and the Total

question 41

Multiple Choice

When the average total cost is $16 and the total cost is $800, how many units is the firm producing?

• A)Impossible to determine with the information given.
• B)12 800.
• C)784.
• D)50.

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Definitions:

Utility Functions

Models used to quantify the satisfaction or utility a consumer derives from consuming various bundles of goods and services.

Consumption

The process or activity of using goods and services to satisfy wants or needs.

Cream

The fatty part of milk, gathered at the top, used in cooking or as a spread.

Strawberries

A sweet, soft, red fruit with a seed-studded surface, commonly consumed fresh, in preserves, or as part of various dishes and desserts.