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Here is some data on the cost of producing these vehicles. Monthly Production Data Please Scroll All The Way to Right To See Output up
Here is some data on the cost of producing these vehicles. Monthly Production Data
Please Scroll All The Way to Right To See Output up to 10 Busses
Output | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 |
Total cost | 300,000 | 500,000 | 675,000 | 825,000 | 950,000 | 1,050,000 | 1,175,000 | 1,325,000 | 1,500,000 | 1,700,000 | 1,925,000 |
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 250,000 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.)
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