Question
9. Firm's Cost Schedule Tim's Juice Bar has the following cost schedules: In the following table, complete the marginal cost, average variable cost, and average
9. Firm's Cost Schedule
Tim'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 | 10 | 40 | |||
2 | 25 | 55 | |||
3 | 45 | 75 | |||
4 | 70 | 100 | |||
5 | 100 | 130 | |||
6 | 135 | 165 |
On the following graph, use the orange points (square symbol) to plot the marginal-cost curve for Tim'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.
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