$1152

$ 3456

60.81

tons

$2304

$1632

$672

$0

LR equilibrium

E(AC) = E(TC)/E(Q) =

$37.89

per ton

Cost of idle capacity =

$1.89

per ton

Proof of cost of idle capacity

E(TC) of production = E(TR) =

$2304

E(TC) of production if always at SAC(min) =

$2189

Excess production costs over SAC(min) =

$115

Excess production costs/E(Q) =

$1.89

per ton