1. **State the problem:** We need to find the Average Total Cost (ATC) when 3 units are produced.
2. **Recall the formula:**
$$\text{ATC} = \frac{\text{Total Cost}}{\text{Quantity}}$$
where Total Cost = Total Fixed Cost + Total Variable Cost.
3. **Identify given values at quantity 3:**
- Total Fixed Cost = 28
- Total Variable Cost = 14
4. **Calculate Total Cost:**
$$\text{Total Cost} = 28 + 14 = 42$$
5. **Calculate ATC:**
$$\text{ATC} = \frac{42}{3}$$
6. **Simplify the fraction:**
$$\text{ATC} = \frac{\cancel{42}}{\cancel{3}} = 14$$
7. **Final answer:**
The Average Total Cost at 3 units produced is **14.00**.
Average Total Cost B90A50
Step-by-step solutions with LaTeX - clean, fast, and student-friendly.