What is the average total cost of the eighth unit?

Rationale

The average total cost of the eighth unit is 14.67.

To find the average total cost of the eighth unit, one must consider the total cost incurred when producing eight units and divide it by the number of units produced. The calculation leads to an average of 14.67, making it the correct choice.

A (16) YOUR ANSWER

This value incorrectly represents the average total cost of the eighth unit, as it suggests a higher average than what is derived from the total costs of the units produced. The average cannot exceed the total cost divided by the number of units.

B (14.67) CORRECT

This choice accurately reflects the average total cost of the eighth unit, calculated as the total cost incurred for eight units divided by eight. This calculation results in a precise average, confirming it as the correct answer.

C (14) YOUR ANSWER

While this figure may seem plausible, it underestimates the average total cost of the eighth unit. The calculation shows that the average is slightly higher, indicating that this choice does not accurately represent the costs involved.

D (8.38) YOUR ANSWER

This answer significantly undervalues the average total cost, suggesting a figure much lower than the actual average derived from the total costs of all eight units. Such a low average does not correspond to the expected costs in this context.

Conclusion

The average total cost of the eighth unit, calculated correctly, is 14.67. This value highlights the importance of accurately assessing total costs associated with production to determine averages effectively. The incorrect answers reflect either miscalculations or misunderstandings of how average costs are derived from total expenses.

What is the average total cost of the eighth unit?

The average total cost of the eighth unit is 14.67.

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