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Calculate the average total costs (ATC) when the output is 20 kg, given that total costs are 9000 FCFA. What is the ATC?

Economics

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Answer

A. 450 FCFA\text{A. 450 FCFA}

Step-by-step solution

4 steps

  1. Identify the total costs (TC) from the graph at the output level of 20 kg.

    From Figure 1, when the output is 20 kg, the Total Costs (TC) line indicates a value of 9000 FCFA.

  2. Identify the output level (Q).

    The given output level is 20 kg.

  3. Calculate the average total costs (ATC) using the formula ATC=TCQ\text{ATC} = \frac{\text{TC}}{\text{Q}}.

    ATC=9000 FCFA20 kg\text{ATC} = \frac{9000 \text{ FCFA}}{20 \text{ kg}}

  4. Perform the calculation.

    ATC=450 FCFA/kg\text{ATC} = 450 \text{ FCFA/kg}

    Comparing this with the given options, option A is 450 FCFA.

    The final answer is A. 450 FCFA\text{A. 450 FCFA}.

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