(Solved): 1. Explain why the MC curve intersects the average total cost curve at the level of output where ave ...

1. Explain why the MC curve intersects the average total cost curve at the level of output where average total cost is at a minimum. 2. Fill in the missing values in the following table: 3. Use the numbers from Q2 to draw one graph showing how total output increases with the quantity of workers hired and a second graph showing the marginal product of labour and the average product of labour. 4. Suppose the total cost of producing 10,000 tennis balls is RM30,000 and the fixed cost is RM10,000. a. What is the variable cost? b. When output is 10,000 , what are the average variable cost and the average fixed cost? c. Assuming that the cost curves have the usual shape, is the dollar difference between the average total cost and the average variable cost greater when the output is 10,000 tennis balls or when the output is 30,000 tennis balls? Explain.