According to Table 1 below, what is the average total cost when output per day is 21?

Question

BlackTom AI · Accepted Answer

Average total cost (ATC) = total cost divided by quantity, so we must find total cost at Q = 21 and divide by 21.

1) Relevant concepts:
- Total cost (TC) = Total fixed cost (TFC) + Total variable cost (TVC).
- Average total cost (ATC) = TC / Q.
- Fixed costs do not change with output, so TFC is the same for all rows.

2) Reasoning step by step:
- From the table at Q = 20 and Q = 22 the TFC is given as 300, so TFC = $300 for all outputs (including Q = 21).
- For Q = 21 the TVC is given as $80.
- Compute total cost at Q = 21: TC = TFC + TVC = 300 + 80.

3) Calculations (all intermediate steps):
- TC(21) = 300 + 80 = 380 dollars.
- ATC(21) = TC(21) ÷ Q = 380 ÷ 21.
- 380 ÷ 21 = 18.095238... which rounded to two decimal places is $18.10.

4) Why this is correct:
Using the definitions (TC = fixed + variable; ATC = TC/Q) with the fixed cost confirmed as $300 yields TC = $380 at Q = 21, and dividing by 21 gives $18.095..., properly rounded to $18.10. This also is consistent with the 20- and 22-unit rows: 350/20 = 17.50 and 420/22 ≈ 19.10.

5) Why the other choices are incorrect:
- b. $20.00 would imply TC = 420 at Q = 21, but TVC + TFC = 380, not 420.
- c. $18.90 is higher than the computed 18.095 and does not match TC = 380/21.
- d. $3.80 is far too low (looks like TVC per unit at Q=20 or miscalculation) and not ATC.

6) Conclusion:
The average total cost when output per day is 21 is $18.10, matching option a.

According to Table 1 below, what is the average total cost when output per day is 21?单项选择题

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