Use the following to answer question:
-(Table: Costs of Producing Bagels)Use Table: Cost of Producing Bagels.Average total cost reaches its minimum value for the _____ bagel.
A)first
B)third
C)fourth
D)fifth

Question

Use the following to answer question: 
-(Table: Costs of Producing Bagels)Use Table: Cost of Producing Bagels.Average total cost reaches its minimum value for the _____ bagel.
A)first 
B)third 
C)fourth 
D)fifth

Quizplus · Accepted Answer

The average total cost is lowest at the fourth bagel. This is where the marginal cost intersects with the average total cost curve. Any production beyond this point will result in higher average total costs.

Use the Following to Answer Question