Question

Santiago Delgado owns a copier store. He leases two copy machines for which he pays $20 each per day. He cannot increase the number of machines he leases without giving the office machine company six weeks’ notice. He can hire as many workers as he wants, at a cost of $40 per day per worker. These are the only two inputs he uses to produce copies. Enter your responses for FC, VC, and TC as integers and round your responses for ATC and MC to two decimal places.
Quantity of Workers Quantity of Copies per day FC VC TC ATC(S) MC($)

0 0 40 0 40 - -

1 600 40 40 80. 13. 06

2 1100 40 80 120. 11. 08

3 1500 40 120 160. 10. 10

4 1800 40 160 200. 11. 13

5 2000 40 200 240. 12. 20

6 2100 40 240 280. 13. 40

The average total cost curve and the marginal cost curve are U shapedThe average total cost curve and the marginal cost curve are related in that the MC curve passes through the minimum point of the ATC curve

Answer 1

Economic theory and the data in the table show that the average total cost curve and the marginal cost curve are related in that the MC curve passes through the minimum point of the ATC curve.

What is the relationship between the MC and ATC curves?

The data given by the table (which is accurately filled up) shows that the MC curve will intersect the ATC curve at its lowest point.

We see this from the fact that before the lowest ATC of 0.107, the marginal cost was less than the ATC. After the lowest ATC however, the marginal cost becomes higher than the ATC.

This shows that the MC curve intersected the ATC at its lowest point of 0.107 and then kept rising above it.

Find out more on the MC curve at brainly.com/question/9335427.