15378901231485TC300,000250,000200,000150,000100,00050,0008060402000MC, AC100TC (BASE)TC (NEW)1500 3000 4500 6000 7500 9000MC(NEW)MC(BASE)AC(NEW)AC(BASE)Q00 1500 3000 4500 6000 7500 9000BASELINE COSTSTC (BASE)AC (BASE)MC (BASE)TC (NEW)AC (NEW)MC (NEW)NEW COSTSOutputFixed costTC_AC_MC ANSWER SHEET ANSWER BINTax per unitAC(NEW)-MC(NEW)Question 13POLICY VARIABLESGo to answer sheetReset to baselinePrint$58,202$23.28$23.41$83.202$33.28$23.412,50050,000$0.00$9.87 Set the level of fixed cost to $50,000.19) At what output is the value for the new ACat its minimum?

Average Cost (AC) is the total cost of producing a certain quantity of output divided by the…

Answered: 19) At what output is the value for the…

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19) At what output is the value for the new AC at its minimum?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

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14
85
TC
300,000
250,000
200,000
150,000
100,000
50,000
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0
0
MC, AC
100
TC (BASE)
TC (NEW)
1500 3000 4500 6000 7500 9000
MC(NEW)
MC(BASE)
AC(NEW)
AC(BASE)
Q
0
0 1500 3000 4500 6000 7500 9000
BASELINE COSTS
TC (BASE)
AC (BASE)
MC (BASE)
TC (NEW)
AC (NEW)
MC (NEW)
NEW COSTS
Output
Fixed cost
TC_AC_MC ANSWER SHEET ANSWER BIN
Tax per unit
AC(NEW)-MC(NEW)
Question 13
POLICY VARIABLES
Go to answer sheet
Reset to baseline
Print
$58,202
$23.28
$23.41
$83.202
$33.28
$23.41
2,500
50,000
$0.00
$9.87

Set the level of fixed cost to $50,000.
19) At what output is the value for the new AC
at its minimum?

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