14. Remember that Jamie has to pay her workers $20 per hour, and there are no other production costs. Using the data to the right we know that Jamie's Average Total Cost when 40 units are produced is:

   Average Total Cost for any given level of output is just Total Cost divided by output. Since Jamie has no other production costs besides labor, total cost when 40 units is produced is just the Number of Workers x Wage or 4 x 20 = 80. Since total cost is 80, Average Total Cost = 80 ÷ 40 = 2