What is the average total cost when output is 200 units in the table above is
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Correct Answer: Option C
Explanation:
Average cost = total cost / output (quantity)
since total cost is not given in the diagram, we have to derive it. its gotten as;
Total cost = fixed cost + variable cost
TC = 100 + 140 = 240
In the question we were asked to find the average cost. Remember the formular given above. thus we have;
AC = 240 / 200 = 1.2
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Average cost = total cost / output (quantity)
since total cost is not given in the diagram, we have to derive it. its gotten as;
Total cost = fixed cost + variable cost
TC = 100 + 140 = 240
In the question we were asked to find the average cost. Remember the formular given above. thus we have;
AC = 240 / 200 = 1.2
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