Question
The following table gives the relationship between output Q and total cost C. Output Q 0 1 2 3 4 5 6 Total Cost C
The following table gives the relationship between output Q and total cost C.
| Output Q | 0 | 1 | 2 | 3 | 4 | 5 | 6 |
| Total Cost C | 100 | 120 | 137 | 152 | 180 | 220 | 265 |
a. Calculate and draw a graph of the Average total cost (ATC)
b. What would have to be the price level for break-even to occur?
c. what is the optimum size(output)of this firm?
d. comment on the shape of the ATC curve, including its implication on efficiency/cost-effectiveness.
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Applied Regression Analysis And Other Multivariable Methods
Authors: David G. Kleinbaum, Lawrence L. Kupper, Azhar Nizam, Eli S. Rosenberg
5th Edition
1285051084, 978-1285963754, 128596375X, 978-1285051086
