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
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
Chapter22: Supply: The Costs Of Doing Business
Section: Chapter Questions
Problem 4E
Related questions
Question
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 |
|
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
|
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