Asked by Keeva Szeto on Jul 14, 2024
Verified
What is the average total cost of producing 7 units if you hire 7 workers?
A) $400
B) $800
C) $1,200
D) $1,600
Average Total Cost
The per unit cost of production, calculated by dividing the sum of all production costs by the quantity of output produced.
Workers
Individuals engaged in physical or mental activity in order to achieve a result, often employed for wages.
Units
The standard measurement or quantity in which a product, service, or statistic is counted or expressed.
- Gain knowledge on the calculation procedures for average variable cost (AVC), average fixed cost (AFC), and average total cost (ATC), along with their roles in production cost examination.
- Acquire knowledge about the concepts and calculations relevant to average cost and average variable cost, and their impact on economic decisions.
Verified Answer
JW
Justin WebsterJul 15, 2024
Final Answer :
B
Explanation :
The given sequence of numbers and letters is not relevant to the question, so we can assume it is extraneous information. To find the average total cost of producing 7 units with 7 workers, we need to look at the corresponding data for those values in the total cost column of the production table. Using the data provided in the question, we can see that the total cost for producing 7 units with 7 workers is $800. Therefore, the best choice is B, with no other choices necessary.
Learning Objectives
- Gain knowledge on the calculation procedures for average variable cost (AVC), average fixed cost (AFC), and average total cost (ATC), along with their roles in production cost examination.
- Acquire knowledge about the concepts and calculations relevant to average cost and average variable cost, and their impact on economic decisions.