Asked by Salvador Cuauhtémoc on May 04, 2024
Verified
Refer to Table 13-15. What is the shape of the average-total-cost curve?
Average-Total-Cost Curve
Graphical representation that shows how the average total costs of production change as the quantity of output is altered.
- Review and specify the architecture of cost curves, including total cost, average total cost, average fixed cost, average variable cost, and marginal cost.
Verified Answer
ZK
Zybrea KnightMay 07, 2024
Final Answer :
ATC = TC/Q, where TC is graphed on the vertical axis and Q (not labor) is graphed on the horizontal axis. For the range of output specified in the table, as output increases, ATC first decreases, then increases ($0.10, $0.06, $0.06, $0.06, $0.07, $0.08). ATC is U-shaped.
Learning Objectives
- Review and specify the architecture of cost curves, including total cost, average total cost, average fixed cost, average variable cost, and marginal cost.