marginal cost and average total cost
Question-1 Answer: “Labor” “Output” “Fixed cost” “Variable cost” “Total cost” “Average fixed cost” “Average variable cost” “Average total cost” “Marginal cost” 0 0 $60 $0 $60 $0 $0 $0 1 1 $60 $70 $130 $60 $70 $130 $70 2 6 $60 $140 $200 $10 $23 $33 $70 3 11 $60 $210 $270 $5 $19 $25 $70 4 15 $60 $280 $340 $4 $19 $23 $70 5 13 $60 $350 $410 $5 $27 $32 $70 6 12 $60 $420 $480 $5 $35 $40 $70 1. 2. The “marginal cost and average total cost intercept at the lowest average cost curve” (Sullivan, Sheffrin and Perez, 2012 pp 448). According to (Sullivan, Sheffrin and Perez, 2012), the average cost is more significant than marginal costs when declining and less than the marginal cost when it is falling. Also, average costs equal marginal costs at the minimum average cost. Question 2 1. Answer:
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