3. The following table gives you information on the total cost of Mac’s ice cream production: Quantity of Ice Cream (liter) Total Cost 0 $50 10 $90 20 $110 30 $140 40 $190 55 $260 60 $350

a. Is Mac producing ice cream in the short run or the long run? Explain.

b. Compute the average total cost at each level of output.

c. Compute the marginal cost at each level of output.

d. At which level of output does the average total cost start increasing? Explain the increasing average total cost and its relationship with the marginal cost.