Asked by Joshua Waterman on Apr 25, 2024
Verified
Refer to Table 13-14. What is the shape of the average-total-cost curve?
Average-Total-Cost Curve
A graphical representation that shows the average total cost per unit of output at various levels of production.
- Assess and detail the contours of cost curves, including aspects such as total cost, average total cost, average fixed cost, average variable cost, and marginal cost.
Verified Answer
MS
Melissa Segura6 days ago
Final Answer :
ATC = TC/Q, where TC is graphed on the vertical axis and Q (not labor) is graphed on the horizontal axis. For the range of output specified in the table, as output increases, ATC first decreases, then increases (0.15, 0.14, 0.16, 0.18, 0.21, 0.25), so ATC is U-shaped.
Learning Objectives
- Assess and detail the contours of cost curves, including aspects such as total cost, average total cost, average fixed cost, average variable cost, and marginal cost.