Question
Homework#3Name Q1- production and cost table. Plot the ATC, AVC, and MC curves on the graph. Labor (L) Output (Q) MP AP TFC TVC TC
Homework#3Name
Q1- production and cost table. Plot the ATC, AVC, and MC curves on the graph.
Labor (L) Output (Q) MP AP TFC TVC TC AFC ATC AVC MC
0 0
1 7
2 15
3 25
4 40
5 54
6 65
7 75
8 84
9 90
10 95 2,000 20,000
Q2. Use the figure to answer the following questions.
a. What output level has the lowest average variable cost?
b. At what point is marginal cost equal to average variable cost?
c. Minimum average total cost is equal to _____.
d. Why is the minimum point on the ATC curve at 35 units above the minimum point on the AVC curve at 30 units?
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