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O vats of juice 1 2 3 4 5 6 $0 10 25 45 70 100 135 $30 40 55 75 100 130 165 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.

O vats of juice 1 2 3 4 5 6 $0 10 25 45 70 100 135 $30 40 55 75 100 130 165 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, 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
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9. Jane's Juice Bar has the following cost schedules: Total Cost Quantity O vats of juice 1 23 456 Variable Cost $0 10 25 45 70 100 135 $ 30 40 55 75 100 130 165 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.
Transcribed Image Text:9. Jane's Juice Bar has the following cost schedules: Total Cost Quantity O vats of juice 1 23 456 Variable Cost $0 10 25 45 70 100 135 $ 30 40 55 75 100 130 165 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.
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