Our company makes school buses. Here is some data on the cost of producing these vehicles. Monthly
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Our company makes school buses. Here is some data on the cost of producing these vehicles. Monthly Production Data
Output | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 |
Total cost | 200,000 | 400,000 | 575,000 | 725,000 | 850,000 | 950,000 | 1,075,000 | 1,225,000 | 1,400,000 | 1,600,000 | 1,825,000 |
At what point is ATC minimized? At what point is MC minimized?
At what point is AVC minimized?
If the price of the good in the market place is 200,000 a unit, what is maximum total profit the company can make? (Hint: you need to figure out what the optimal output level is given this price.)
Related Book For
Introduction To Economics Social Issues And Economic Thinking
ISBN: 9780470574782
1st Edition
Authors: Wendy A. Stock
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