a. Complete the following schedule, if the fixed cost = BD 700. (Note: you will receive full marks if ALL the calculations are correct) Formula: MC - ΔΤC / ΔQ AFC = FC/Q %3D AVC = VC/Q • ATC = TC/Q Total Cost Marginal Cost Average Fixed Cost Average Variable Cost Average Total Cost Output 650 1 850 1,100 1,450 4 1,850 5 2,350 b. What is the lowest level of ATC? At what output level ATC is minimized?

a. Complete the following schedule, if the fixed cost = BD 700. (Note: you will receive full marks if ALL the calculations are correct) Formula: MC - ΔΤC / ΔQ AFC = FC/Q %3D AVC = VC/Q • ATC = TC/Q Total Cost Marginal Cost Average Fixed Cost Average Variable Cost Average Total Cost Output 650 1 850 1,100 1,450 4 1,850 5 2,350 b. What is the lowest level of ATC? At what output level ATC is minimized?

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter6: Proudction Costs

Section: Chapter Questions

Problem 8SQP

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