9. Problems and Applications Q9 Jane's Juice Bar has the following cost schedules: In the following table, complete the marginal cost, average variable cost, and average total cost columns. Quantity Variable Cost Total Cost Marginal Cost Average Variable Cost Average Total Cost (Vats of juice) (Dollars) (Dollars) (Dollars) (Dollars) (Dollars) 0 0 30 1 5 35 2 15 45 3 30 60 4 50 80 5 75 105 6 105 135 On the following graph, use the orange points (square symbol) to plot the marginal-cost curve for Jane's Juice Bar. (Note: Be sure to plot from left to right and to plot between integers. For example, if the marginal cost of increasing production from 1 vat of juice to 2 vats of juice is $5, then you would plot a point at (1.5, 5).) Then use the purple points (diamond symbol) to plot the average-variable cost curve starting at 1 vat of juice, and use the green points (triangle symbol) to plot the average-total-cost curve also starting at 1 vat of juice. Marginal CostAverage Variable CostAverage Total Which of the following statements are true according to the previous graph? Check all that apply. The marginal-cost curve lies above the average-variable-cost curve. The marginal-cost curve is below the average-total-cost curve when output is less than four and average total cost is declining. The marginal-cost curve is below the average-total-cost curve when output is greater than four and average total cost is rising.

Principles of Microeconomics (MindTap Course List)

8th Edition

ISBN:9781305971493

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter13: The Cost Of Production

Section: Chapter Questions

Problem 1PA

See similar textbooks

9. Problems and Applications Q9

Jane's Juice Bar has the following cost schedules:

In the following table, complete the marginal cost, average variable cost, and average total cost columns.

Quantity	Variable Cost	Total Cost	Marginal Cost	Average Variable Cost	Average Total Cost
(Vats of juice)	(Dollars)	(Dollars)	(Dollars)	(Dollars)	(Dollars)
0	0	30

1	5	35

2	15	45

3	30	60

4	50	80

5	75	105

6	105	135

On the following graph, use the orange points (square symbol) to plot the marginal-cost curve for Jane's Juice Bar. (Note: Be sure to plot from left to right and to plot between integers. For example, if the marginal cost of increasing production from 1 vat of juice to 2 vats of juice is $5, then you would plot a point at (1.5, 5).) Then use the purple points (diamond symbol) to plot the average-variable cost curve starting at 1 vat of juice, and use the green points (triangle symbol) to plot the average-total-cost curve also starting at 1 vat of juice.

Marginal CostAverage Variable CostAverage Total

Which of the following statements are true according to the previous graph? Check all that apply.

The marginal-cost curve lies above the average-variable-cost curve.

The marginal-cost curve is below the average-total-cost curve when output is less than four and average total cost is declining.

The marginal-cost curve is below the average-total-cost curve when output is greater than four and average total cost is rising.

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 6 steps with 5 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions