Question

In: Economics

Suppose Rob is currently producing 10,000 hamburgers per month at a total cost of ​$2,000.00. What...

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.)

Solutions

Expert Solution

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

Rahul Sunny answered 1 year ago
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