### Cost Analysis Question **Question:** Answer the question based on the following cost data: | Output | Total Cost | |--------|------------| | 0 | $24 | | 1 | $33 | | 2 | $41 | | 3 | $48 | | 4 | $54 | | 5 | $61 | | 6 | $69 | The average total cost of producing 2 units of output is: **Multiple Choice Options:** - $8.5 - $12 - $8 - $20.5 **Explanation:** To find the average total cost of producing 2 units of output, use the formula: \[ \text{Average Total Cost} = \frac{\text{Total Cost}}{\text{Output}} \] For 2 units of output, the total cost is $41. Thus: \[ \text{Average Total Cost} = \frac{41}{2} = 20.5 \] Therefore, the correct answer is $20.5.
### Cost Analysis Question **Question:** Answer the question based on the following cost data: | Output | Total Cost | |--------|------------| | 0 | $24 | | 1 | $33 | | 2 | $41 | | 3 | $48 | | 4 | $54 | | 5 | $61 | | 6 | $69 | The average total cost of producing 2 units of output is: **Multiple Choice Options:** - $8.5 - $12 - $8 - $20.5 **Explanation:** To find the average total cost of producing 2 units of output, use the formula: \[ \text{Average Total Cost} = \frac{\text{Total Cost}}{\text{Output}} \] For 2 units of output, the total cost is $41. Thus: \[ \text{Average Total Cost} = \frac{41}{2} = 20.5 \] Therefore, the correct answer is $20.5.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
![### Cost Analysis Question
**Question:**
Answer the question based on the following cost data:
| Output | Total Cost |
|--------|------------|
| 0 | $24 |
| 1 | $33 |
| 2 | $41 |
| 3 | $48 |
| 4 | $54 |
| 5 | $61 |
| 6 | $69 |
The average total cost of producing 2 units of output is:
**Multiple Choice Options:**
- $8.5
- $12
- $8
- $20.5
**Explanation:**
To find the average total cost of producing 2 units of output, use the formula:
\[ \text{Average Total Cost} = \frac{\text{Total Cost}}{\text{Output}} \]
For 2 units of output, the total cost is $41. Thus:
\[ \text{Average Total Cost} = \frac{41}{2} = 20.5 \]
Therefore, the correct answer is $20.5.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F55fa1b8f-af85-487a-ba3f-73161e455858%2Fc9e2660e-949f-429d-ab8e-191713fd68bd%2F13ksyac.jpeg&w=3840&q=75)
Transcribed Image Text:### Cost Analysis Question
**Question:**
Answer the question based on the following cost data:
| Output | Total Cost |
|--------|------------|
| 0 | $24 |
| 1 | $33 |
| 2 | $41 |
| 3 | $48 |
| 4 | $54 |
| 5 | $61 |
| 6 | $69 |
The average total cost of producing 2 units of output is:
**Multiple Choice Options:**
- $8.5
- $12
- $8
- $20.5
**Explanation:**
To find the average total cost of producing 2 units of output, use the formula:
\[ \text{Average Total Cost} = \frac{\text{Total Cost}}{\text{Output}} \]
For 2 units of output, the total cost is $41. Thus:
\[ \text{Average Total Cost} = \frac{41}{2} = 20.5 \]
Therefore, the correct answer is $20.5.
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