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Ike’s bikes is a major manufacturer of bicycles. Currently, the company produces bikes using only one factory. However, it is considering expanding production to two or even three factories. The following table shows the company’s short-run average total cost (sratc) each month for various levels of production if it uses one, two, or three factories. (note: q equals the total quantity of bikes produced by all factories. )

Respuesta :

The short run average cost when Ike's bike is producing 600 bikes per month will be $720.

What is a short run average cost?

It should be noted that the short run average cost simply means the average fixed cost plus the average variable cost.

From the complete question, the table given shows the average total cost. In this case, the quantity is 600 and the number of factory is 1. Therefore, the short run average total cost  from the table is $720.

Learn more about short run on:

https://brainly.com/question/15639226

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