Suppose that a firm is currently employing 20 workers, the only variable input, at a wage rate of $60. The average product of labor is 30, the last worker added 12 units to total output, and total fixed cost is $3,600.

output = 600

TVC = 1200

AVC = 2

Total cost = 4800

ATC = 8

MC = 5

Consider that the market price is $7.00. Is the firm currently producing at its profit-maximizing level of output?

What is the average total cost?