Suppose Elouise runs a hamburger joint. She sells 352 hamburgers per day. Here are her daily...

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Suppose Elouise runs a hamburger joint. She sells 352 hamburgers per day. Here are her daily costs: Cost Labor $200 Ingredien

business economics

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Answer 1

Answer #1

Total cost = 200+500+100+60+20 = 880

ATC = TC/Q = 880/352 = 2.5

MC = 2

As ATC is above MC

so, when she increases her output, then her average total cost will decrease

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Answer 2

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Suppose Elouise runs a hamburger joint. She sells 352 hamburgers per day. Here are her daily...

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Suppose Elouise runs a hamburger joint. She sells 352 hamburgers per day. Here are her daily...