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## Order the answer to: Mr. Otto Carr, owner of Otto’s Autos, sells cars. Otto

Academic Help business economics Order the answer to: Mr. Otto Carr, owner of Otto’s Autos, sells cars. Otto

# Order the answer to: Mr. Otto Carr, owner of Otto’s Autos, sells cars. Otto

Question Mr. Otto Carr, owner of Otto’s Autos, sells cars. Otto buys autos for \$c each and has no other costs. (a) What is his total cost if he sells 10 cars? _____. What if he sells 20 cars? ______. Write down the equation for Otto’s total costs assuming he sells y cars: TC(y) = _____. (b) What is Otto’s average cost function? AC(y) = ______. For every additional auto Otto sells, by how much do his costs increase? _____. Write down Otto’s marginal cost function: MC(y) = ____. (c) In the graph below draw Otto’s average and marginal cost curves if c = 20. (d) Suppose Otto has to pay \$b a year to produce obnoxious television commercials. Otto’s total cost curve is now TC(y) = _____, his average cost curve is now AC(y) = _____, and his marginal cost curve is MC(y) = ______. (e) If b = ______, use red ink to draw Otto’s average cost curve on the graph above. business economics
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