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2. Based on the table below, do the following analysis: Output(Y) Total Cost(TC) Marginal Cost(MC) 1 $210 (1) 2 $340 (2) 3 $490 (3) 4
2. Based on the table below, do the following analysis:
Output(Y) | Total Cost(TC) | Marginal Cost(MC) |
1 | $210 | (1) |
2 | $340 | (2) |
3 | $490 | (3) |
4 | $660 | (4) |
5 | $850 | (5) |
6 | $1,060 | (6) |
7 | $1,290 | - |
2-1. Calculate Marginal Cost(MC) for (1) - (6) .
2-2. Draw a curve of TC and a curve of MC, by dot plotting. (Hint: refer to slide 32, 33 and 39 of Ch13 PPT.)
2-3. Denote the "efficient scale" on the graph you draw from the above step 2-2.
2-4. Look at the MC curve, describe its pattern, then give an explanation on why it is rising eventually.
(no need for explanations, Thank you)
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