Answered: PProblem 3-Page (174): The following…

ECON MICRO

5th Edition

ISBN:9781337000536

Author:William A. McEachern

Publisher:William A. McEachern

Chapter7: Production And Cost In The Firm

Section: Chapter Questions

Problem 4.10P

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Question

The following table gives you information on the total cost of Mac’s ice cream production:

b. Compute the average total cost at each level of output.

c. Compute the marginal cost at each level of output.

d. At which level of output does the average total cost start increasing? Explain the increasing average total cost and its relationship with the marginal cost.

PProblem 3-Page (174):
The following table gives you information on the total cost of Mac's ice cream production:
Quantity of Ice
Cream (liter)
0
10
20
30
40
50
60
Total Cost
$50
$90
$110
$140
$190
$260
$350
b. Compute the average total cost at each level of output.

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how Marginal cost been calculated here. {MC=Change in ATC/Change in Q}

please explian still not clear!!

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