Calculate average total cost, what is the most efficient (minimum ATC) output quantity given the costs below? What should be the cost to produce 900 units?
|
Output
|
Avg. Variable Cost
|
Step Cost
|
Total Fixed Cost
|
Average Total Cost
|
|
0
|
$0
|
$50,000
|
$500,000
|
-
|
|
150
|
$1,000
|
$100,000
|
$500,000
|
-
|
|
300
|
$950
|
$100,000
|
$500,000
|
-
|
|
450
|
$1,000
|
$100,000
|
$500,000
|
-
|
|
600
|
$1,200
|
$200,000
|
$500,000
|
-
|
|
750
|
$1,500
|
$200,000
|
$500,000
|
-
|
|
900
|
$1,800
|
$300,000
|
$500,00
|
-
|