Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
$20
B
$15
C
$25
D
$10
Understanding the Answer
Let's break down why this is correct
Answer
To find the average total cost (ATC) per unit, you need to divide the total cost by the number of units produced. In this case, the firm has a total cost of $300 for producing 15 units. So, you take the total cost of $300 and divide it by 15. When you do this calculation, you get an ATC of $20 per unit, because $300 divided by 15 equals $20. This means that on average, it costs the firm $20 to produce each unit of their product.
Detailed Explanation
To find the average total cost, divide the total cost by the number of units. Other options are incorrect because This answer might come from thinking the total cost is divided incorrectly; This choice could be from miscalculating the division.
Key Concepts
Average Total Cost (ATC)
Total Cost
Quantity of Output
Topic
Calculating Average Total Cost
Difficulty
easy level question
Cognitive Level
understand
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