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Table 6-E -Refer to Table 6-E

Question 28

Multiple Choice

Table 6-E
 Quantity of Bicycles 0123456 (in thousands)   Total Cost of Production $5$8$12$16.5$20$27.5$36 (in thousands)  \begin{array}{lrrrrrrr}\text { Quantity of Bicycles } & 0 & 1 & 2 & 3 & 4 & 5&6 \\\text { (in thousands) } \\\text { Total Cost of Production } & \$ 5 & \$ 8 & \$ 12 & \$ 16.5 & \$ 20 & \$ 27.5 & \$ 36\\\text { (in thousands) } \end{array}
-Refer to Table 6-E.At what level of output (in thousands) is average total cost minimized?


A) 1
B) 2
C) 3
D) 4
E) 5

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