In: Economics
Suppose Rob is currently producing 10,000 hamburgers per month at a total cost of $2,000.00. What is his average total cost of production? $______ . (Enter a numeric response using a real number rounded to two decimal places.)
Average total cost is the cost per unit of output.
It is calculated as follows:
ATC = Total Cost/ output = 2000/10000 = 0.20
Thus, average total cost is $0.20