Asked by Jesse Shiber on Jul 12, 2024
Verified
(Table: Cost Data) Use Table: Cost Data.The average total cost of producing 2 purses is:
A) $60.
B) $120.
C) $190.
D) $220.
Average Total Cost
The total cost per unit of output, calculated by dividing the total cost of production by the total quantity produced.
- Evaluate the average fixed, variable, and comprehensive costs from detailed data.
Verified Answer
LE
Lesley EstradaJul 13, 2024
Final Answer :
A
Explanation :
The average total cost (ATC) is calculated by dividing the total cost by the quantity produced. If the total cost of producing 2 purses is $120 (as we must infer or calculate based on provided data or previous understanding), then the ATC = $120 / 2 = $60.
Learning Objectives
- Evaluate the average fixed, variable, and comprehensive costs from detailed data.