9. Problems and Applications Q9

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.

Quantity

Variable Cost

Total Cost

Marginal Cost

Average Variable Cost

Average Total Cost

(Vats of juice)

(Dollars)

(Dollars)

(Dollars)

(Dollars)

(Dollars)

003015352154533060450805751056105135

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.