Answered: The ATC of a Firm is 25 when its output…

The ATC of a Firm is 25 when its output level is 21. The marginal cost producing the next unit is 33. Please find the ATC of the firm after it produces the next unit.

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

The ATC of a Firm is 25 when its output level is 21. The marginal cost producing the next unit is 33. Please find the ATC of the firm after it produces the next unit.

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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Marginal cost refers to the additional cost that incurred due to increasing one more unit of output.

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