If the total cost of producing 20 ceramic vases is $240, what is the average total cost of producing a single vase?
a. $240/20 = $12
b. $240 × 20 = $4,800
c. 20/$240 = $0.08
d. $240 – 20 = $220
a. $240/20 = $12
Average total cost is the total cost divided by the quantity of output: $240 (total cost) divided by 20 (total quantity) = $12 (average cost per unit).
Economics
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