Chapter 11 Production and Costs – Units of Total Marginal Product Total Variable АТС AVC MC Labor Product Cost Cost $200 1 4 $700 $175 $125 $125 2 10 $1200 3 8 $2300 $116.67 4 22 $2600 $125 5 25 $128 A. What is the fixed cost to produce 21 items? B. At what level of output will this firm minimize its average total costs?
Chapter 11 Production and Costs – Units of Total Marginal Product Total Variable АТС AVC MC Labor Product Cost Cost $200 1 4 $700 $175 $125 $125 2 10 $1200 3 8 $2300 $116.67 4 22 $2600 $125 5 25 $128 A. What is the fixed cost to produce 21 items? B. At what level of output will this firm minimize its average total costs?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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A. and B.
Transcribed Image Text:Chapter 11 Production and Costs –
Units of
Total
Marginal
Product
Total
Variable
ATC
AVC
MC
Labor
Product
Cost
Cost
$200
1
4
$700
$175
$125
$125
2
10
$1200
3
8.
$2300
$116.67
4
22
$2600
$125
5
25
$128
A. What is the fixed cost to produce 21 items?
B. At what level of output will this firm minimize its average total costs?
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