00:01
So for this question, we're to compute the average total cost, the average variable costs, and the marginal cost of producing 60 and 72 records.
00:26
And we're also told to draw the graph of three curves between 60 and 70 acres.
00:34
So the first thing we need to know is that average total cost, is defined as the ratio of total cost and quantity of outputs.
00:47
So average total cost is total cost divided by quantity of outputs.
00:55
And average total cost is also equals to fixed cost plus variable costs divided by quantity of output, right? so the average total cost for 60 efforts be calculated as average.
01:12
Average total cost equals to 160 plus 240 divided by 60.
01:28
So because this is the total, this is the total fixed cost between them.
01:35
So this is going to give you 400 divided by 60 and that will give you 6 .67.
01:43
So the average total cost for 60 records is 6 .67.
01:49
Now we're going to find the average total cost for 70 records.
01:55
So average total cost for 70 ecorts is 160 plus 3 .320 divided by 72.
02:16
And this is equal to 480 divided by 72...