Suppose a firm's total cost and marginal cost are given by TC = 200 + 10Q + 9Q² and MC = 10 + 18Q. The output level that minimizes average total cost is ____. A) 22.22 B) 20 C) 18 D) 10

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To find the output level that minimizes average total cost (ATC), set MC equal to ATC. First, find ATC by dividing TC by Q: ATC = (200/Q) + 10 + 9Q. Set ATC equal to MC: (200/Q) + 10 + 9Q = 10 + 18Q. Solving for Q gives Q = 22.22.

Suppose a Firm's Total Cost and Marginal Cost Are Given