Explain why the output at which average variable cost is at a minimum is smaller than the output at which average total cost is at a minimum. Len’s body board factory pays $60 a day for equipment and $200 a day to each student it hires. The table sets out Len’s total product schedule.

Transcribed Image Text:

Labor (workers per day) 0 | 2 I m 3 4 Total product (body boards per day) 0 20 44 60 72