(a) Compute average fixed costs and average variable costs in Figure 5.3 for all rates of output. At what rate of output is (are)

(b) Average fixed costs the lowest?

(c) Average variable costs the lowest?

(d) Average total cost the lowest?

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$24 22 20 18 ATC 16 м 12 8. ATC varies with the rate of output. 4. 10 20 30 40 50 RATE OF OUTPUT (pairs of jeans per day) COST (dollars per pair) 2. (2) (3) Varlable (4) (5) Average Total Cost (1) Rate of Flxed Total Output Costs Costs Cost н $120 $120 10 120 85 205 $20.50 15 120 125 245 16.33 к 20 120 150 270 13.50 30 120 240 360 12.00 м 40 120 350 470 11.75 50 120 550 670 13.40 51 120 633 753 14.76