Question

Taylor Chemicals produces a particular chemical at a fixed cost of $ 1,000 per day. The following table displays how marginal cost varies with output (in cases):

Quantity (Cases) Marginal Cost
1............ $ 500
2............ 400
3............ 325
4............ 275
5............ 325
6............ 400
7 ............ 500
8............ 625
9 ............ 775
10............ 950

Required:
a. Given the preceding data, construct a table that reports total cost and average cost at various output levels from 1 to 10 cases.
b. At what quantity is average cost minimized?
c. Does marginal cost always intersect average cost at minimum average cost? Why?



$1.99
Sales0
Views130
Comments0
  • CreatedDecember 15, 2014
  • Files Included
Post your question
5000