Average Total Cost (ATC)

Related BrainMass Solutions

• short-run marginal-cost curve

  Explain why the short-run marginal-cost curve must interesect the short-run average total cost curve at the mimimum point of the ATC. Does the marginal cost curve intersect the average-variable cost curve at it's mimimum point?

• Graphing Cost Curves: AFC, AVC, ATC and MC

  511045 Graphing Cost Curves: AFC, AVC, ATC and MC Illustrate the AFC, AVC, ATC, and MC curves on a diagram and show that marginal cost intersects average total cost at the minimum of average total cost.

• Calculate Average Variable Cost using Average Total cost

  It is also the Average total cost (ATC) of the profit maximizing or loss minimizing quantity of shoes: 3,000,000 Plant & Equipment 20% if total assembly cost (not ATC) Labor 80% of total assembly cost (not ATC)

• Economic Margins, Price, Elasticity

  equal average total cost and average variable cost? 3. Using the table in exercise 1, explain what happens to ATC when MC > ATC, MC < ATC, and MC ¼ ATC. 4. Using the table in exercise 2, find the quantity where MC ¼ ATC.

• Cost Structure of a Perfectly Competitive Firm

  A firm is currently producing 10,000 units of output, its average total cost is $28, its marginal cost is $20, and its average variable cost is $20. Given these facts, explain whether the following statements are true or false: a.

• Production Cost Analysis: Calculating MC, AVC, ATC and Output of the Firm

  What about average total cost? Average variable cost=AVC=$2 Marginal cost=MC=$5 Since MC>AVC, we can say that AVC is increasing. Average total cost=ATC=$8 Marginal cost=MC=$5 Since MC<ATC, we can say that ATC is decreasing.

• Economics: Cost Curves

  Table 3 Total Product (TP) Average variable cost (AVC) Average total cost (ATC) Marginal cost (MC) 0 na na na

• average fixed cost (AFC) curve, average variable cost (AVC) curve, the average total cost (ATC) curve, and the marginal cost (MC)

  The other abbreviations used above are TFC for total fixed cost Q for quantity TVC for total variable cost TC for total cost This solution exemplifies average fixed cost (AFC) curve, average variable cost (AVC) curve, the average total cost (ATC

• Effect of 5 Conditions on a Firm's ATC and AVC Curves

  Imposition of stricter environmental protection laws. a) Rent is a fixed cost. Average Variable Cost (AVC) will not change but Average Total Cost (ATC) will decrease.