Answer to Question #262608 in Microeconomics for Alua

Question

Fill in the blanks: 

 with the correct information. Suppose you are given the monthly variable cost of a bowling alley and told the cost of leasing the space is $200 a month. The output is the number of lanes that are open. When is the marginal cost minimized?

Answer 1

The marginal costs are lowest at an output volume of 1000 units. Such that, it expenses higher to produce one extra commodity than it did earlier. As an outcome, there will be reduced profit.