Answer the question on the basis of the following cost data. Output Average Fixed Cost Average Variable Cost
1 $50.00 $100.00
2 25.00 80.00
3 16.67 66.67
4 12.50 65.00
5 10.00 68.00
6 8.37 73.33
7 7.14 80.00
8 6.25 87.50

The marginal cost curve would intersect the average variable cost curve at about:

a. 2 units of output.
b. 4 units of output.
c. 6 units of output.
d. 7 units of output.

b. 4 units of output

Explanation:

MC and AVC have the following relationship:

a. MC is above AVC when AVC is rising

b. MC is below AVC when AVC is falling

c. MC = AVC when AVC is at its minimum

Thus, MC would intersect the AVC curve at its minimum point. Since AVC is minimum at 4 units of output equal to 65. It means MC intersects AVC at 4 units of output.

a recipe serves 8 people, and calls for 5 lbs of apples and 2 cups of flour. you want to prepare it for 24 people. divide 24 by 8 to get 3, and then multiply your ingredients by 3.

so for 24 people, you'll need 15 lbs of apples, and 6 cups of flour.