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This question was created from AB224 Unit 7 Assignment.docx https://www.coursehero.com/file/52069463/AB224-Unit-7-Assignmentdocx/

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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)

Top Answer

3.Minimum cost output level is the quantity of output at which ATC is lowest is 61.39 and 90 smart cell phone is produced in... View the full answer

Calculation of AVC, ATC, AFC and MC.png

Smart Phone
Total Cost | Variable Average
Average
Average
Marginal
Cell produced (TC)
Cost(VC) |Variable Cost
Total Cost
Fixed Cost
Cost (MC)
In an hour
(AVC)
(ATC)
(AFC)
0
$3200
NA
NA
NA
NA
NA
15...

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