8 Long-Run Relationships - Long-Run Cost Curve Exercise 1 8 04:12:46 Jamal silk screens promotional posters for local bands in Atlanta, Jamal can choose three different silk screen machines: the Series T800 machine, the T850 machine, or the T1000 machine. Each machine allows him to produce more posters per day. The costs of printing promotional posters using the three machines are detailed in the three tables below. Poster Printing with T800 Machine Production Costs Fixed cost Variable Cost Total Cost Quantity Average Total Cost (dollars) (dollars) (dollars) (dollars) O $180 $0 $180 100 180 30 210 $2.10 200 180 110 290 1.45 300 180 180 360 1.20 400 180 380 560 1.49 500 180 645 825 1.65 600 180 930 1.110 1.85 Poster Printing with T850 Machine Production Costs Fixed cost Variable Cost Total Coat Quantity (dollars) (dollars) (dollars) 300 $300 $255 5525 400 300 320 620 300 300 425 725 600 100 450 750 700 300 540 140 300 1.000 900 300 1.140 Average Total Cost (dollars) 51.75 1.55 300 780 1.25 1.20 1.35 1.60 Poster Printing with T1000 Machine Production Costs Fixed Coat Variable Coat Total Coat Quantity (dollars) (dollars) (dollars) Average Total Cost (dollars) - 00 300 600 700 200 900 300 300 300 300 300 425 450 540 780 1,149 225 750 840 1,090 1.440 1.45 1.25 1.20 1.35 1.50 8 04:12:03 Poster Printing with T1000 Machine Production Costs Fized Coat Variable Coat Total Cost Quantity (dollars) (dollars) (dollars) 600 $450 $420 $870 700 450 355 BOS 300 450 350 300 900 650 225 675 L.000 450 350 BDO 1.100 450 595 1,065 1.200 930 Average Total Cost (dollars) $1.45 1.15 1.00 0.75 0.00 0.95 1.15 a. It Jomal expects that on average bands will order 600 promotional posters per concert, which silk screen machine should he order 10 minimize his wverage cost of production? (Click to select b. W Jamal expects that on average bands will order 900 promotional posters per concert, which silk screen machine should he order to minimize his average cost of production Click to Wech c. If Jamal expects that on average bands will order 300 promotional posters per concert, which silk screen machine should he order to minimize his average cost of production? (Click to select)