Could you help me understand this problem. Could you indicate where the numbers come from when calculating?Textbook: Economics by Krugman & Wells, Chapter 11, Check your understanding 11-3. 1. The accompanying table shows three possible combinations of fixed cost andaverage variable cost for a single firm. Average variable cost is constant in thisexample (it does not vary with the quantity of output produced).Choice123Fixed cost$8,00012,00024,000Average variable cost$1.000.750.25a. For each of the three choices, calculate the average total cost of producing 12,000,22,000, and 30,000 units. For each of these quantities, which choice results in thelowest average total cost?

In economics, the average total cost (ATC) of production can be determined by adding the average…

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Economics

Could you help me understand this problem. Could you indicate where the numbers come from when calculating?

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter12: The Cost Of Production

Section: Chapter Questions

Problem 7PA

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Comparative Advantage and Absolute Advantage Analysis

The theory of absolute advantage was given by Adam Smith in the year 1776.

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Could you help me understand this problem. Could you indicate where the numbers come from when calculating?

Textbook: Economics by Krugman & Wells, Chapter 11, Check your understanding 11-3.

1. The accompanying table shows three possible combinations of fixed cost and
average variable cost for a single firm. Average variable cost is constant in this
example (it does not vary with the quantity of output produced).
Choice
1
2
3
Fixed cost
$8,000
12,000
24,000
Average variable cost
$1.00
0.75
0.25
a. For each of the three choices, calculate the average total cost of producing 12,000,
22,000, and 30,000 units. For each of these quantities, which choice results in the
lowest average total cost?

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