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The table below shows a car manufacturer's total cost of producing cars. Q TC TVC AVC AFC ATC MC 0 $500,000 1 540,000 2 560,000
The table below shows a car manufacturer's total cost of producing cars. Q TC TVC AVC AFC ATC MC 0 $500,000 1 540,000 2 560,000 3 570,000 4 590,000 5 620,000 6 660,000 7 720,000 8 800,000 9 920,000 10 1,100,000 a. For each level of output, calculate the total variable cost [TVC], the average variable cost [AVC], the average fixed cost [AFC], the average total cost [ATC], and the marginal cost [MC]. b. What is this manufacturer's fixed cost? Explain how you derived this. c. What is the minimum average cost output quantity? Explain how you derived this. d. Create a single, well-labeled diagram that shows the manufacturer's AVC, ATC, and MC curves
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