Suppose Honda's total cost of producing 4 cars is $225,000 and its total cost of producing 5 cars is $250,000

Question

Suppose Honda's total cost of producing 4 cars is $225,000 and its total cost of producing 5 cars is $250,000
a)What is the average total cost of producing 5 cars
b)What is the marginal cost of the fifth car?
c)Draw the marginal cost curve and the average total cost curve for a typical firm,and explain why these curves cross where they do

Kehkashan · Accepted Answer

Average total cost of producing 5 cars is ATC=Change in TC/ Change in Q or Delta TC/ Delta Q which is 250000/5 50000. Marginal Cost for 5th car is 25000

Naomie · Answer

I don't know but I need the graph of this question