Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
$2
B
$4
C
$5
D
$10
Understanding the Answer
Let's break down why this is correct
Answer
Average Total Cost (ATC) is a way to find out how much it costs to produce each unit of a product. To calculate ATC, you take the Total Cost (TC) and divide it by the number of units produced. In this case, if the Total Cost is $200 and you produced 50 units, you would divide 200 by 50. This gives you an ATC of $4 per unit. So, it costs $4 to make each of the 50 units.
Detailed Explanation
To find the Average Total Cost, divide the Total Cost by the number of units. Other options are incorrect because This answer suggests each unit costs $2; This answer means each unit costs $5.
Key Concepts
Total Cost
Topic
Calculating Average Total Cost
Difficulty
easy level question
Cognitive Level
understand
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