Answer to Question #226813 in Macroeconomics for Promise

Question

Use the data in the following table to answer the question.

Outputs (units) - - - - - - - Total costs (R)

0 - - - - - - - 100
1 - - - - - - - 110
2 - - - - - - - 130
3 - - - - - - - 166
4 - - - - - - - 220
5 - - - - - - - 300



The average total cost of the fourth unit is___________

Answer 1

Average total cost$=\frac{total cost} {quantity the firm is producing}$

Average total cost of the fourth unit will be

$\frac{R220}{4units}$$= R 55$