TotalTotal CostOutput1,00012,0002,8003,50044,0004,5005,20076,0008.7,000Refer to Table 5.1. Average total cost (ATC) at 3 units of output isO 1,167.1,400.O 500.3,500. When a firm makesprofit, this sends a signal to others. Morecompetitors would enter the business, increasing supply and drivingpricesO positive economic profit; downpositive accounting profit; downnormal profit; downO positíve economic profit; up

We have to find average total cost.

Answered: Total Cost Output 1,000 2,000 2,800…

Total Cost Output 1,000 2,000 2,800 3,500 4. 4,000 4,500 6. 5,200 6,000 8. 7,000 Refer to Table 5.1. Average total cost (ATC) at 3 unm 1.

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter11: The Firm: Production And Costs

Section: Chapter Questions

Problem 3P

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Question

Total
Total Cost
Output
1,000
1
2,000
2,800
3,500
4
4,000
4,500
5,200
7
6,000
8.
7,000
Refer to Table 5.1. Average total cost (ATC) at 3 units of output is
O 1,167.
1,400.
O 500.
3,500.

When a firm makes
profit, this sends a signal to others. More
competitors would enter the business, increasing supply and driving
prices
O positive economic profit; down
positive accounting profit; down
normal profit; down
O positíve economic profit; up

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