Complete the production cost table for Conrads Coffee Shop. Graph the last three columns in the table. Briefly explain what these columns help Conrad determine and what is important about the relationship between the average total cost and the marginal cost. (You do not have to include the table above with your graph, but the numbers on the graph should match the table.)

1. Draw your own graph on a piece of paper (don't download a graph from the internet).
2. Clearly label all axes and lines.

Conrad's Coffee Shop Total Cost Fixed Cost Variable Cost Output (Cups of coffee per hour) 0 1 Average Average Average Fixed Variable Total Cost Cost Cost Marginal Cost 2 3 4 5 $ 3.00 $ $ 3.00 $ 0.30 $ 3.00 $ 0.80 $ 3.00 $ 1.50 $ 3.00 $ 2.40 $ 3.00 $ 3.50 $ 3.00 $ 4.80 $ 3.00 $ 6.30 $ 3.00 $ 8.00 $ 3.00 $ 9.90 $ 3.00 $ 12.00 6 7 8 9 10