| $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 |
|