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Show that for a proit-maximizing firm producing at its optimal quantity, y, its average total cost is minimized when marginal cost is equal to average total cost. Some tips to get you started:

Microeconomics A Contemporary Intro

10th Edition

ISBN:9781285635101

Author:MCEACHERN

Publisher:MCEACHERN

Chapter8: An Introduction To Perfect Competition

Section: Chapter Questions

Problem 4QFR

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Question

Show that for a proit-maximizing firm producing at its optimal quantity, y, its average total cost
is minimized when marginal cost is equal to average total cost. Some tips to get you started:

Definition Definition Total cost of producing a certain quantity of a good, divided by the quantity produced. It is the sum of all costs (fixed and variable) required to produce one unit of output.

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