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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

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2 answers
  1. 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

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

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