The President of ACME wants to know why he shouldn't produce at the point when average costs are the lowest. Explain to him why this is not the best production level. 12345678910111213141516171819258833968885883885889549499499858SE:22AHammersPriceFixed Costs90919293949596979899100101102103104105106107108109110111112113114115116117118119120121122123124125126127128129130B131132133134135136CH32.002,900Quantity Fixed Costs Variable Costs Total Costs Revenue Profit2,9002,9302,9002,9572,9002,9842,9003,0112,9003,0382,9003,0652,9003,0922,9003,1192,9003,1462,9003,1732,9002,9002,9002,9002,9002,9002,9002,9002,9002,9002,9002,9002,900C2,9002,9002,9002,9002.9002,9002.9002.9002.9002.9002,9002.9002.9002.9002.9002.9002.9002.9002.9002.9002.9002.9002.9002.900233330.4057.3784.33111.28138.23165.18192.12219.07246.04273.01300.00327.01354.04381.11408.20435.33462.49489.70516.95544.25571.60599.01626.48654.01681.61709.28737.02764.84792.74820.73848.80876.97905.23933.59962.05990.631.019.311.048.101.077.011.106.041.135.201.164.481.193.901.223.45D1.253, 141.282.981.312.95in innnE3,2003,2273,2542,8802,9122,9442,9763,0083,0403,0723,1043,1363,1683,2003,2323,2643,2963,3283,2813,3083,3353,3623,3903,4173,4443,4723.4993.5263.5543,5823.609 415,0673,637 421,8943.665 428,7863.693 435.7433.721442,7673.749449,8563,777 457.0133,805 464.2383.834 471.5323,8623.891478.894486.3293.919493.8333.948 501,4093.977 509.0574.006 516.7794.035 524.576540.395548,4194.064 532.4474.0944 1234.153 556.5214.183 564.7024.213 572.961einenFALA3,3603,3923,4243.4563,4883,5203,5523,5843.6163.648F5AC(50) 200 32.56 #VALUE!(45)32.49857143(40)32.43836957(35)32.37935484(30) 32.32159574(25) 32.26505263(20)32.20958333(15)32.15536082(10)32.10244898(5)32.0506060610152025303439444853586266411.458418,257425.121432,051439,046446,107453.236460 433467,698475,032482.438489.914497.461505 080512.773520.541528.382536,301544 295552 368560 519568 748AN TONG HG mi gian giaoGPLE3231.9505940631.9023529431.85543689HMRon Ann-31.6531.6531.6631.6631.6631.6731.6731.6731.6831.6831.6831.6931.6931.6931.7031.7031.7031.7031.7131.7131.7131.7131.7231.7231.7231.8096153831.7650476231.7216037731.6794392531.6384259331.5986238531.5631.5226126131.4864285731.4514159331.4176315831.3850434831.35362069 3.578.1731.3234188 3.605.9331.29440678 3.633.7831.26663866 3.661.7131.2431.214628131.1904098431.1673983731.1455645231. 1250431.1056349231.087401573.689.723,717.823,746.013.774.293 802.673.831.153.859.753.888.4531.07039063 3.917.2631.05457364 3.946.1831.04 3.975.2231.02656489 4.004.4031.01439394 4.033.6931 00338346 4.063.1230 9935820930.9850370430.977573534.092.684.122.384.152.22MC27272727272727272727272727272727272727272727282828282828282828282828292929222229292929293030303030

Introduction Total cost is the combination of total fixed cost and total variable cost. It includes…

Answered: The President of ACME wants to know why…

The President of ACME wants to know why he shouldn't produce at the point when average costs are the lowest. Explain to him why this is not the best production level.

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 President of ACME wants to know why he shouldn't produce at the point when average costs are the lowest. Explain to him why this is not the best production level.

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258833968885883885889549499499858SE:
22
A
Hammers
Price
Fixed Costs
90
91
92
93
94
95
96
97
98
99
100
101
102
103
104
105
106
107
108
109
110
111
112
113
114
115
116
117
118
119
120
121
122
123
124
125
126
127
128
129
130
B
131
132
133
134
135
136
CH
32.00
2,900
Quantity Fixed Costs Variable Costs Total Costs Revenue Profit
2,900
2,930
2,900
2,957
2,900
2,984
2,900
3,011
2,900
3,038
2,900
3,065
2,900
3,092
2,900
3,119
2,900
3,146
2,900
3,173
2,900
2,900
2,900
2,900
2,900
2,900
2,900
2,900
2,900
2,900
2,900
2,900
2,900
C
2,900
2,900
2,900
2,900
2.900
2,900
2.900
2.900
2.900
2.900
2,900
2.900
2.900
2.900
2.900
2.900
2.900
2.900
2.900
2.900
2.900
2.900
2.900
2.900
2333
30.40
57.37
84.33
111.28
138.23
165.18
192.12
219.07
246.04
273.01
300.00
327.01
354.04
381.11
408.20
435.33
462.49
489.70
516.95
544.25
571.60
599.01
626.48
654.01
681.61
709.28
737.02
764.84
792.74
820.73
848.80
876.97
905.23
933.59
962.05
990.63
1.019.31
1.048.10
1.077.01
1.106.04
1.135.20
1.164.48
1.193.90
1.223.45
D
1.253, 14
1.282.98
1.312.95
in innn
E
3,200
3,227
3,254
2,880
2,912
2,944
2,976
3,008
3,040
3,072
3,104
3,136
3,168
3,200
3,232
3,264
3,296
3,328
3,281
3,308
3,335
3,362
3,390
3,417
3,444
3,472
3.499
3.526
3.554
3,582
3.609 415,067
3,637 421,894
3.665 428,786
3.693 435.743
3.721
442,767
3.749
449,856
3,777 457.013
3,805 464.238
3.834 471.532
3,862
3.891
478.894
486.329
3.919
493.833
3.948 501,409
3.977 509.057
4.006 516.779
4.035 524.576
540.395
548,419
4.064 532.447
4.094
4 123
4.153 556.521
4.183 564.702
4.213 572.961
einen
FALA
3,360
3,392
3,424
3.456
3,488
3,520
3,552
3,584
3.616
3.648
F
5
AC
(50) 200 32.56 #VALUE!
(45)
32.49857143
(40)
32.43836957
(35)
32.37935484
(30) 32.32159574
(25) 32.26505263
(20)
32.20958333
(15)
32.15536082
(10)
32.10244898
(5)
32.05060606
10
15
20
25
30
34
39
44
48
53
58
62
66
411.458
418,257
425.121
432,051
439,046
446,107
453.236
460 433
467,698
475,032
482.438
489.914
497.461
505 080
512.773
520.541
528.382
536,301
544 295
552 368
560 519
568 748
AN TONG HG mi gian giao
G
PLE
32
31.95059406
31.90235294
31.85543689
H
MR
on Ann-
31.65
31.65
31.66
31.66
31.66
31.67
31.67
31.67
31.68
31.68
31.68
31.69
31.69
31.69
31.70
31.70
31.70
31.70
31.71
31.71
31.71
31.71
31.72
31.72
31.72
31.80961538
31.76504762
31.72160377
31.67943925
31.63842593
31.59862385
31.56
31.52261261
31.48642857
31.45141593
31.41763158
31.38504348
31.35362069 3.578.17
31.3234188 3.605.93
31.29440678 3.633.78
31.26663866 3.661.71
31.24
31.2146281
31.19040984
31.16739837
31.14556452
31. 12504
31.10563492
31.08740157
3.689.72
3,717.82
3,746.01
3.774.29
3 802.67
3.831.15
3.859.75
3.888.45
31.07039063 3.917.26
31.05457364 3.946.18
31.04 3.975.22
31.02656489 4.004.40
31.01439394 4.033.69
31 00338346 4.063.12
30 99358209
30.98503704
30.97757353
4.092.68
4.122.38
4.152.22
MC
27
27
27
27
27
27
27
27
27
27
27
27
27
27
27
27
27
27
27
27
27
27
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28
28
28
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28
28
28
28
28
28
29
29
29
2222
29
29
29
29
29
30
30
30
30
30

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