Question
Kenji'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
Kenji'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 | 8 | 38 | |||
2 | 18 | 48 | |||
3 | 30 | 60 | |||
4 | 50 | 80 | |||
5 | 80 | 110 | |||
6 | 120 | 150 | |||
On the following graph, use the orange points (square symbol) to plot the marginal-cost curve for Kenji'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 above the average-total-cost curve when output is greater than four and average total cost is rising.
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.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started