Question
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
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) |
0 | 0 | 30 | |||
1 | 5 | 35 | |||
2 | 15 | 45 | |||
3 | 30 | 60 | |||
4 | 50 | 80 | |||
5 | 75 | 105 | |||
6 | 105 | 135 | |||
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.
Marginal CostAverage Variable CostAverage Total Cost01234564035302520151050CostsQuantity (Vats of juice)
Which of the following statements are true according to the previous graph?Check all that apply.
The marginal-cost curve is below the average-total-cost curve when output is greater than four and average total cost is rising.
The marginal-cost curve lies below the average-variable-cost curve.
The marginal-cost curve is above the average-total-cost curve when output is greater than four and average total cost is rising.
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