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cost1 - slope is at a minimum occurs at the output level 7...

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Additional Problem 1: Production Costs The figure below shows two average cost curves and the MC curve. Complete the sentences given below. 1. The TC of producing 12 units of X is equal to $ __________. 2. The TFC of producing 15 units of X is equal to $ __________. 3. The AVC of producing 12 units of X is equal to $ __________. 4. At output level 5, MC is (greater / smaller) than AFC. 5. At output level 7, TVC is (greater / smaller) than $20.00. 6. The flatness point on the TC function (i.e. the point at which the numerical value of the
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Unformatted text preview: slope is at a minimum) occurs at the output level __________. 7. The slope of the TVC function at 7 units of output is (greater / smaller) than 4. 8. AVC is decreasing at all levels of output less than __________. 9. At the level of output at which ATC has its minimum, TC is greater than $__________, but less than $__________. (The estimated range of TC should not exceed $24.) 10. ATC, AVC, and MC are all increasing functions at output levels greater than __________....
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