Answered: The table below presents the average…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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The table below presents the average and marginal cost of producing cheeseburgers per hour at a roadside diner.

Cheeseburger Production Costs

Quantity(burgers per hour)	Average Variable Cost (dollars)	Average Total Cost (dollars)	Marginal Cost (dollars)
0	—	—	—
10	$1.00	$6.60	$1.00
20	0.70	3.50	0.40
30	0.70	2.57	0.70
40	0.78	2.18	1.00
50	0.88	2.00	1.30
60	1.07	2.00	2.00
70	1.34	2.14	3.00
80	1.74	2.44	4.50
90	2.23	2.86	6.20
100	2.81	3.37	8.00

a. At a quantity of 40 cheeseburgers per hour, the average total cost of production is (Click to select) falling rising at a minimum and the marginal cost of cheeseburger production is (Click to select) falling rising at a minimum .

b. At a quantity of 60 cheeseburgers per hour, the average variable cost of production is (Click to select) falling rising at a minimum and the average total cost of cheeseburger production is (Click to select) falling rising at a minimum .

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