cost1a - slope is at a minimum occurs at the output level_4...

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Additional Problem 1 Answers: 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 $ ____96 ______. 2. The TFC of producing 15 units of X is equal to $ ___20 _______. 3. The AVC of producing 12 units of X is equal to $ ___6.33 _______. 4. At output level 5, MC is (greater / smaller) than AFC. Smaller 5. At output level 7, TVC is (greater / smaller) than $20.00. Greater. 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 ____4 ______. 7. The slope of the TVC function at 7 units of output is (greater / smaller) than 4. Smaller 8. AVC is decreasing at all levels of output less than ____7 ______. 9. At the level of output at which ATC has its minimum, TC is greater than $ 40 , but less than $ 64 . (The estimated range of TC should not exceed $24.) 10. ATC, AVC, and MC are all increasing functions at output levels greater than __8 ___....
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