Assume that cost curves have the standard U-shape. Suppose average total cost (ATC) is at its minimum when the output is 10 units. Also, we know that marginal cost of the 9th unit is $5. What is the ATC when 10 units are produced? 1) $5. 2) Greater than $5. 3) Less than $5. 4) There isn't sufficient information to answer the question.

Assume that cost curves have the standard U-shape. Suppose average total cost (ATC) is at its minimum when the output is 10 units. Also, we know that marginal cost of the 9th unit is $5. What is the ATC when 10 units are produced? 1) $5. 2) Greater than $5. 3) Less than $5. 4) There isn't sufficient information to answer the question.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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