Our company makes school buses. Here is some data on the cost of producing these vehicles. Monthly Production Data

Output	0	1	2	3	4	5	6	7	8	9	10
Total cost	200,000	400,000	575,000	725,000	850,000	950,000	1,075,000	1,225,000	1,400,000	1,600,000	1,825,000

At what point is ATC minimized? At what point is MC minimized?

At what point is AVC minimized?

If the price of the good in the market place is 200,000 a unit, what is maximum total profit the company can make? (Hint: you need to figure out what the optimal output level is given this price.)

Answer rating: 100% (QA)

Okay lets analyze this data ATC is minimized where MC first becomes positive ... View the full answer