3. Jane's Juice Bar has the following cost schedules: Quantity 0 vats of juice Variable Cost Total Cost $0 $30 1 10 40 2. 25 55 3 45 75 4 70 100 100 130 6. 135 165 a. Calculate average variable cost, average total cost, and marginal cost for each quantity. b. Graph all three curves. What is the relationship between the marginal-cost curve and the average-total-cost curve? Between the marginal-cost curve and the average- variable- cost curve? Explain.

3. Jane's Juice Bar has the following cost schedules: Quantity 0 vats of juice Variable Cost Total Cost $0 $30 1 10 40 2. 25 55 3 45 75 4 70 100 100 130 6. 135 165 a. Calculate average variable cost, average total cost, and marginal cost for each quantity. b. Graph all three curves. What is the relationship between the marginal-cost curve and the average-total-cost curve? Between the marginal-cost curve and the average- variable- cost curve? Explain.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter7: Production, Costs, And Industry Structure

Section: Chapter Questions

Problem 33CTQ: Average cost curves (except for avenge fixed cost) tend to be U-shaped, decreasing and then...

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