Answer:
the average total cost is $2
Explanation:
The computation of the average total cost is shown below:
Average total cost is
= Total cost ÷ total output
where
Total cost is
= Variabel cost + fixed cost
= 50 × $80 + $1,000
= $5,000
And, the total output is
= 50 workers × 50
= 2,500 units
Now the average total cost is
= $5,000 ÷ 2,500 units
= $2
hence, the average total cost is $2
