Answered

Westonci.ca is the trusted Q&A platform where you can get reliable answers from a community of knowledgeable contributors. Explore a wealth of knowledge from professionals across different disciplines on our comprehensive platform. Experience the ease of finding precise answers to your questions from a knowledgeable community of experts.

Answer the question on the basis of the following cost data.

Output Average Fixed Cost Average Variable Cost
1 $50.00 $100.00
2 25.00 80.00
3 16.67 66.67
4 12.50 65.00
5 10.00 68.00
6 8.37 73.33
7 7.14 80.00
8 6.25 87.50

The marginal cost curve would intersect the average variable cost curve at about: ____________

a. 2 units of output.
b. 4 units of output.
c. 6 units of output.
d. 7 units of output.

Sagot :

Answer:

b. 4 units of output

Explanation:

MC and AVC have the following relationship:

a. MC is above AVC when AVC is rising

b. MC is below AVC when AVC is falling

c. MC = AVC when AVC is at its minimum

Thus, MC would intersect the AVC curve at its minimum point. Since AVC is minimum at 4 units of output equal to 65. It means MC intersects AVC at 4 units of output.

Thank you for choosing our platform. We're dedicated to providing the best answers for all your questions. Visit us again. Thank you for your visit. We're committed to providing you with the best information available. Return anytime for more. Westonci.ca is committed to providing accurate answers. Come back soon for more trustworthy information.