Spotless Car Wash must pay per day for each automated line i

Spotless Car Wash must pay per day for each automated line it uses and pay its workers per day. From the information in the following table, calculate:

Solution

All the costs are shown in the above table. These costs behave in a way described in the texts. Optimal production level is 160 units where ATC is minimum i.e 1.96.

Marginal cost is constant i.e $60. This means the firm has a horizontol marginal cost curve.

TFC	TVC	TC	AFC	AVC	ATC	MC
75	-75	-	-	-	--	-
75	60	135	2.5	2	4.5	60
75	120	195	1.07	1.71	2.7	60
75	180	255	0.6	1.5	2.125	60
75	240	315	0.468	1.5	1.96	60
75	300	375	0.39	1.57	1.97	60
75	360	435	0.35	1.71	2.07	60