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Which of the following statements are true according to the previous graph? Check all that apply. O The marginal-cost curve is below the average-total-cost curve when output is greater than four and average total cost is rising. The marginal-cost curve is above the average-total-cost curve when output is greater than four and average total cost is rising. O The marginal-cost curve lies below the average-variable-cost curve.

Which of the following statements are true according to the previous graph? Check all that apply. O The marginal-cost curve is below the average-total-cost curve when output is greater than four and average total cost is rising. The marginal-cost curve is above the average-total-cost curve when output is greater than four and average total cost is rising. O The marginal-cost curve lies below the average-variable-cost curve.

Principles of Economics, 7th Edition (MindTap Course List)
Principles of Economics, 7th Edition (MindTap Course List)
7th Edition
ISBN:9781285165875
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter13: The Cost Of Production
Section: Chapter Questions
Problem 9PA
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9. Firm's Cost Schedule 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. Marginal Cost (Dollars) Variable Cost Total Cost Average Total Cost Average Variable Cost (Dollars) Quantity (Vats of juice) (Dollars) (Dollars) (Dollars) 30 1 38 2 18 48 3 30 60 4 50 80 5 80 110 6 120 150 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. 40 35 AAAAAA
Transcribed Image Text:9. Firm's Cost Schedule 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. Marginal Cost (Dollars) Variable Cost Total Cost Average Total Cost Average Variable Cost (Dollars) Quantity (Vats of juice) (Dollars) (Dollars) (Dollars) 30 1 38 2 18 48 3 30 60 4 50 80 5 80 110 6 120 150 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. 40 35 AAAAAA
40 35 Marginal Cost 30 25 Average Variable Cost 20 15 Average Total Cost 10 5 2 Quantity (Vats of juice) Which of the following statements are true according to the previous graph? Check all that apply. O The marginal-cost curve is below the average-total-cost curve when output is greater than four and average total cost is rising. O The marginal-cost curve is above the average-total-cost curve when output is greater than four and average total cost is rising. O The marginal-cost curve lies below the average-variable-cost curve. Costs
Transcribed Image Text:40 35 Marginal Cost 30 25 Average Variable Cost 20 15 Average Total Cost 10 5 2 Quantity (Vats of juice) Which of the following statements are true according to the previous graph? Check all that apply. O The marginal-cost curve is below the average-total-cost curve when output is greater than four and average total cost is rising. O The marginal-cost curve is above the average-total-cost curve when output is greater than four and average total cost is rising. O The marginal-cost curve lies below the average-variable-cost curve. Costs
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