Suppose the total cost of producing 50,000 telephones is $500,000 . Suppose also that at an output of 30,000 . the average total cost is $8 and the marginal cost is $6 . What is true about the minimum of the average total cost curve?
a. The minimum of the ATC is greater than $10.
b. The minimum of the ATC is less than $8.
c. The minimum of the ATC is between $8 and $10.
d. The minimum of the ATC can be no bigger than $6.
e. The minimum of the ATC corresponds to a quantity greater than 50,000.
B
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