Un'rt F [A3224 Assignment Template] 3. Based on your calculations in completing the table in Question 2, what is this

manufacturer's minimum cost output level? Explain your answer. [3 points) 4. According to textbook page 334. when one additional unit is produced. two factors

directly impact the change in average total costs, the Spreading effect and the

Diminishing Returns effect. In the following two situations. explain how the factors of

the Spreading effect and the Diminishing Retums effect cause the average total cost

to be different. a. Production of the 10'“ Gizmo resulted in an average total cost (ATE) of $20!}, but

production of the 11m Gizmo resulted in an average total cost of $22. {3 points) h. Production of the ﬁlth Gizmo resulted in an average total cost (ATE) of $20. but

production of the 11m Gizmo resulted in an average total cost of $13. {3 points)