5.
We know that
Average Total Cost (ATC)
is just Total Cost divided by output. If we know
ATC
and output
(Q* in this case)
then Total cost is just
ATC
x Q*
or area
0CBQ*
shown in yellow in section
(1)
.
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5. We know that Average Total Cost (ATC) is just Total Cost divided by output. If we know ATC and output (Q* in this case) then Total cost is just ATC x Q* or area 0CBQ* shown in yellow in section (1).
