### Graph AnalysisThe graph illustrates the relationship between price or cost (P) and quantity (q) for a firm. Multiple curves are plotted, including:- **MC (Marginal Cost)**: This curve generally slopes upwards as it reflects the incremental cost of producing an additional unit.- **ATC (Average Total Cost)**: This U-shaped curve shows the cost per unit of output, which initially decreases, reaches a minimum, and then increases.- **MR (Marginal Revenue)**: This is a horizontal line indicating the revenue gained from selling one additional unit.Important points are marked along the quantity axis (q), notably at 5, 14, 22, 30, and 40. Horizontal dashed lines from the P-axis intersect with these points at prices of 20 and 16.### Educational Question**At what level of output is average total cost minimized?**- ○ 5- ○ 30- ○ 22- ○ 14The average total cost is minimized at the lowest point of the ATC curve, corresponding to the level of output where the curve is at its minimum.

Answered: Image /qna-images/answer/9c5635d7-a8d7-4ed8-9c2c-b2f4d6301724.jpg

Answered: MC ATC 20 -MR 16 14 22 Firm 30 40 At…

Business

Economics

MC ATC 20 -MR 16 14 22 Firm 30 40 At what level of output is average total cost minimized? 30 22 14 O O O

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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