Use the following table and use your previous calculations: find the quantity where ATC is at a minimum and find the quantity that is the most efficient operating point for the firm. Total Output Total Cost TFC TVC AFC AVC ATC MC 0 $20 10 $40 20 $60 30 $90 40 $120 50 $180 60 $280 a. MC = ATC between 30 and 40 Quantity ATC at minimum between 20 and 40 Quantity b. MC = ATC at 30 Quantity ATC at minimum between 20 and 40 Quantity c. MC = ATC at 40 Quantity ATC at minimum between 20 and 40 Quantity d. MC = ATC between 30 and 40 Quantity ATC at minimum between30 and 40 Quantity e. MC = ATC between 20 and 40 Quantity ATC at minimum between 20 and 40 Quantity
QUESTION 17
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Use the following table and use your previous calculations:
find the quantity where ATC is at a minimum and find the quantity that is the most efficient operating point for the firm.
Total Output
Total Cost
TFC
TVC
AFC
AVC ATC
MC
0
$20
10
$40
20
$60
30
$90
40
$120
50
$180
60
$280
a. MC = ATC between 30 and 40 Quantity
ATC at minimum between 20 and 40 Quantity
b. MC = ATC at 30 Quantity
ATC at minimum between 20 and 40 Quantity
c. MC = ATC at 40 Quantity
ATC at minimum between 20 and 40 Quantity
d. MC = ATC between 30 and 40 Quantity
ATC at minimum between30 and 40 Quantity
e. MC = ATC between 20 and 40 Quantity
ATC at minimum between 20 and 40 Quantity
Average total cost refers to the cost per unit of output. Marginal cost refers to an addition to the total cost, which incurred in the process of producing an extra unit of output. Fixed costs are the costs incurred incurred when output is zero.
The following formulas can be used to complete the given table.
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