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Quantity of staff Quantity of coffees made Fixed cost (rent) Variable cost (wages) Total cost Average total cost Marginal cost 0 0 $70.00 $0.00 $70.00

Quantity of staff Quantity of coffees made Fixed cost (rent) Variable cost (wages) Total cost Average total cost Marginal cost
0 0 $70.00 $0.00 $70.00 $0.00 $0.00
1 30 $70.00 $200.00 $270.00 $9.00 $6.67
2 70 $70.00 $400.00 $470.00 $6.71 $5.00
3 130 $70.00 $600.00 $670.00 $5.15 $3.33
4 170 $70.00 $800.00 $870.00 $5.12 $5.00
5 200 $70.00 $1,000.00 $1,070.00 $5.35 $6.67

Question 3a.Graph the marginal cost (MC) curve and the average total cost (ATC) curve on a diagram. Remember to label the curves and the axes fully. (0.5 marks)

Question 3b.State clearly the relationship between marginal cost and average total cost. (0.5 marks)

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3a The graph illustrating the marginal cost MC curve and the average total cost ATC curve is as foll... blur-text-image

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