A piano maker builds 20 pianos per month. Her total costs are $6,000 per month. What is the average cost of each piano?

To determine the average cost of each piano, you need to divide the total costs by the number of pianos produced. In this scenario, the piano maker has total costs of $6,000 per month and produces 20 pianos in that timeframe.

The formula for average cost is:

Average Cost = Total Costs / Number of Pianos

Substituting in the given values:

Average Cost = $6,000 / 20 = $300

Thus, the average cost of each piano is $300. This value represents the cost attributed to producing each individual piano, accounting for the total expenses incurred by the piano maker. It reflects the economic principle of average cost, which is essential for evaluating pricing strategies and profitability in production-based businesses. This makes it clear why the answer is $300.