Rate of output fixed costs average fixed costs variable costs average variable costs total cost average total cost 0 $120 -- $0 0 $120 -- 10 120 85 205 $20.50 15 120 125 245 16.33 20 120 150 270 13.50 30 120 240 360 12.00 40 120 350 470 11.75 50 120 550 670 13.40 51 120 633 753 14.76

b. at what rate of output are average fixed costs the lowest? units

c. at what rate of output are average variable costs the lowest? units

d. at what rate of output is average total cost the lowest? units

In march 2012, the state of california started requiring that all packaging for food and drink with the additive 4-methylimidazole (4-mi) be clearly labeled with a cancer warning. because of this, both pepsi and coke changed their formula to eliminate 4-mi as an ingredient. if pepsi and coke did not change their formula, holding all else constant, what would have happened to the demand for these goods, assuming pepsi and coke were in a competitive market? a. the demand curve for both pepsi and coke would have shifted to the right, causing the price of both products to decrease and the profits for the companies to fall. b. the demand curve for pepsi and coke would have remained unchanged, but the price of both products would have decreased and the profits for the companies would have fallen. c. the demand curve for pepsi and coke would have decreased, but the prices and profits would not have changed. d. the demand curve for only one of them would change because pepsi and coke are substitutes. e. the demand curve for pepsi and coke would have shifted to the left, causing the price of both products to decrease and the profits for both companies to fall.