-In the Above Table, What Is the Average Total Cost

question 330

Multiple Choice

-In the above table, what is the average total cost to produce 4 units of output?

• A) $30
• B) $60
• C) $55
• D) $20

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Definitions:

Average Variable Cost

The total variable costs divided by the quantity of output, measuring the per-unit variable cost of production.

Marginal Cost

The additional financial outlay required to produce one more unit of a good or service.

Marginal Cost

The expense incurred by the production of one extra unit of a product or service.

Total Cost

The entirety of expenses incurred during the production process of goods or services, which includes both fixed and variable costs.