Posted by **John Doe** on Saturday, October 8, 2011 at 12:16am.

The schedule below shows the level of output that can be produced using different levels of input. A unit of input costs $80 and the fixed costs of running your business are $50.

Input Output

0 0

1 2

2 6

3 9

4 11

5 12

1. What is your AVC of producing 11 units of output? __________

2. What is your AFC of producing 12 units? __________

3. What is the marginal cost of the 12th unit? __________

4. What is the marginal cost of your 9th unit? __________

5. At what level of output is ATC at its minimum? __________

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