a. Compute the average cost and marginal cost. Units of output Total Cost Average Cost Marginal Cost 30 40 55 4 75 100 130 165 b. Plot in a graph the average cost and the marginal cost. c. What is the efficient production of the firm? Explain its implication if the firm produce more than its efficient output.

a. Compute the average cost and marginal cost. Units of output Total Cost Average Cost Marginal Cost 30 40 55 4 75 100 130 165 b. Plot in a graph the average cost and the marginal cost. c. What is the efficient production of the firm? Explain its implication if the firm produce more than its efficient output.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter7: Production, Costs, And Industry Structure

Section: Chapter Questions

Problem 41P: Compute the average total cost, average variable cost, and marginal cost of producing 50 and 72...

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