Table 5.3-Yearbook costs
(This table shows the total cost of producing yearbooks using a school's print shop. )
-The production rate in Table 5.3 at which the lowest possible average total cost for yearbooks is achieved would be:
A) 200 yearbooks per year.
B) 300 yearbooks per year.
C) 400 yearbooks per year.
D) 500 yearbooks per year.

Question

Table 5.3-Yearbook costs
(This table shows the total cost of producing yearbooks using a school's print shop. ) 
-The production rate in Table 5.3 at which the lowest possible average total cost for yearbooks is achieved would be:
A) 200 yearbooks per year. 
B) 300 yearbooks per year. 
C) 400 yearbooks per year. 
D) 500 yearbooks per year.

Quizplus · Accepted Answer

The lowest possible average total cost is achieved at the minimum point of the Average Total Cost (ATC) curve, which is where the Marginal Cost (MC) curve intersects the ATC curve. Looking at Table 5.3, we can see that for producing 400 yearbooks per year, the ATC is at its lowest point of $9.50 per yearbook. Therefore, producing 400 yearbooks per year would be the best choice to achieve the lowest possible average total cost for yearbooks.

Table 5.3-Yearbook Costs (This Table Shows the Total Cost of Producing Yearbooks Using