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.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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