Microeconomics - Cost Function The following table shows the total costs of a factory that produces cars:
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Question:
Microeconomics - Cost Function The following table shows the total costs of a factory that produces cars:
Quantity of Cars | Total Cost (expressed in ThUS$) |
0 | 500 |
1 | 540 |
2 | 560 |
3 | 570 |
4 | 590 |
5 | 620 |
6 | 660 |
7 | 720 |
8 | 800 |
9 | 920 |
10 | 1,100 |
a.- Calculate: Fixed Cost (FC), Variable Cost (VC); Average Variable Cost (AVC), Average Total Cost (ATC), Average Fixed Cost (AFC) and Marginal Cost (MC) for each production level.
b. Calculate the amount of production that MINIMIZES cost.
THANKS :D
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