1.Fully explain the relationship between various short-term costs and the cost minimization output, specifically that MC=ATC at the lowest point as indicated in the excel sheet and illustrated in the graph showing all the various costs and the cost minimi

Sheet1

Short Run Total Cost
Labor	Output	Fixed Cost	Material	Labor	Variable Cost	Total Cost	AFC	AVC	AC	MC
0	0	40	0	0	0	40.00	ERROR:#DIV/0!	ERROR:#DIV/0!	ERROR:#DIV/0!	ERROR:#VALUE!
1	2	40	10	12	22	62.00	20.00	11.00	31.00	11.00
2	6	40	30	24	54	94.00	6.67	9.00	15.67	8.00
3	9	40	45	36	81	121.00	4.44	9.00	13.44	9.00
4	11	40	55	48	103	143.00	3.64	9.36	13.00	11.00
5	12	40	60	60	120	160.00	3.33	10.00	13.33	17.00
6	13	40	65	90	155	195.00	3.08	11.92	15.00	35.00
Fixed Equipment		40
Materials (per unit)		5
Each Worker up to 5		12			Each worker after 5		15

Fixed, Variable, and Total Cost

Fixed Cost 0 2 6 9 11 12 13 40 40 40 40 40 40 40 Variable Cost 0 2 6 9 11 12 13 0 22 54 81 103 120 155 Total Cost 0 2 6 9 11 12 13 40 62 94 121 143 160 195

AFC, AVC, AC, and MC

AFC 2 6 9 11 12 13 20 6.666666666666667 4.4444444444444446 3.6363636363636362 3.3333333333333335 3.0769230769230771 AVC 11 9 9 9.3636363636363633 10 11.923076923076923 AC 31 15.666666666666668 13.444444444444445 13 13.333333333333334 15 MC 11 8 9 11 17 35