Question

estion 15 ut yet swered arked out of 2.00 100 1 P Flag question 413 The table shows the cost information for a farm when the farm has three different amounts of land: one field, two fields, or three fields In the long run, if the farmer is producing 12 units, what would be their average total cost? Q TC(1) ATC(0) Q TC(2) ATC2) 0 Q TC(3) ATC(3) 0 200 0 300 104 1040 202 202.0 1 301 2 3010 112 56.0 2 206 103.0 2 3 303 151.5 124 3 212 70.7 3 306 4 1020 140 35.0 4 220 55.0 4 310 775 5 160 32.0 5 230 46.0 5 315 630 184 30.7 6 242 40.3 6 321 53.5 7 212 30.3 7 7 328 46.9 8 244 30.5 8 272 34.0 8 336 420 9 280 31.1 9 290 322 9 345 38.3 10 320 320 10 31.0 10 355 355 11 364 33.1 11 332 302 11 366 33.3 12 412 343 12 356 29. 12 378 315 13 484 35.7 13 382 29.4 13 391 30.1 14 520 371 14 410 29.3 14 405 28.9 15 580 387 15 440 29.3 15 420 28.0 256 36.6 Tim 310 Answer:

Answer 1

From the three fields, the farmer will produce in the field which has the lowest long run average cost for producing 12 units. So, we can see that the long run average total cost would be the least for two fields and the average total cost of producing 12 units would be 29.7.

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