Asked by Markayla Eakins on Jun 28, 2024
Verified
The total cost (TC) of producing computer software diskettes (Q) is given as: 
What is the average total cost?
A) 500
B) 5Q
C) 5
D) 5 + (200/Q)
E) none of the above
Average Total Cost
The total cost of production (fixed and variable costs combined) divided by the quantity of output produced.
Total Cost
The sum of fixed and variable costs incurred in producing a given level of output.
Computer Software
Programs and operating information used by a computer to perform specific tasks or functions.
- Spot and tally average, border, consistent fixed, and adaptable variable costs.
Verified Answer
JN
James NewtonJun 29, 2024
Final Answer :
D
Explanation :
The formula for average total cost (ATC) is TC/Q. From the given formula, we can see that TC = 5Q + 200. Substituting this in the ATC formula, we get ATC = (5Q + 200)/Q = 5 + (200/Q). Therefore, the correct answer is D.
Learning Objectives
- Spot and tally average, border, consistent fixed, and adaptable variable costs.