contestada

A firm in a purely competitive industry is currently producing 1,200 units per day at a total cost of $700. If the firm produced 1,000 units per day, its total cost would be $450, and if it produced 700 units per day, its total cost would be $425. Instructions: Round your answers to 2 decimal places. a. What are the firm's ATC at these three levels of production

Respuesta :

Answer:

Explanation:

The average total cost is calculated as the total cost divided by the number of outputs. The firm's ATC at these three levels of production will be:

1. 1,200 units per day at a total cost of $700.

ATC = Total cost/output

ATC = $700/1200

ATC = $0.58

2. If the firm produced 1,000 units per day, its total cost would be $450.

ATC = Total cost/output

ATC = $450/1000

ATC = $0.45

3. If it produced 700 units per day, its total cost would be $425.

ATC = Total cost/output

ATC = $425/700

ATC = $0.61

Otras preguntas