Given the total cost function for a firm is (Q = output and TC = total...

Question

Question

Given the total cost function for a firm is

(Q = output and TC = total cost)

Q TC
0   0
1   20
2   39
3   56
4   71
5   84
6   95

the average total cost of producing six units of output is $15.83

True OR Flase

business economics

Answer 1

Answer #1

Average total cost = Total cost / quantity produced.

ATC = 95 / 6

= $15.83

the statement is "True"

Answer 2

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