Ray hires students to clean houses at $400 a week. He leases equipment that costs $300 a week. The table gives Ray's

Question

Ray hires students to clean houses at $400 a week. He leases equipment that costs $300 a week. The table gives Ray's total product and total cost schedules. At what output is Ray's average total cost at a minimum? Labor Total Product Total Cost 0 9 300 1 2 700 2 5 1100 3 9 1500 4 12 1900 5 14 2200 6 15 2700 If your quantities have the same average total cost, we take the average quarterly, like that at the minimum average total cost. Ray's average total cost is at minimum when he cleans _____ houses in a week.

Help In Homework · Accepted Answer

Labor Total Product Total Cost Average total cost 0 9 300 0 1 2 700 350 2 3 1100 183 3 9 1500 56 4 12 1900 40 5 14 2300 33 6 15 2700 30 So, the Average total cost is minimum at 15 houses in a week.

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Ray hires students to clean houses at $400 a week

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