Final answer:
The average total cost is calculated by dividing the sum of total fixed and variable costs by the quantity of output. With a total fixed cost of $200, a total variable cost of $600, and a production of 4 units, the average total cost is $200 per unit.2) 200
Step-by-step explanation:
The question asks for the calculation of the average total cost of producing goods, given the total fixed cost and the total variable cost, as well as the total product quantity. To find the average total cost, one must add the total fixed cost and the total variable cost to find the total cost, then divide this sum by the quantity of output.
In this case, the total fixed cost is $200, and the total variable cost is $600, producing 4 units. The average total cost is therefore calculated by taking the sum of the total fixed and variable costs (${200 + $600}) and dividing by the total product (4 units), which gives an average total cost of ($800 / 4) = $200 per unit.