3. Jane's Juice Bar has the following cost schedules: Variable Cost $0 Total Cost Quantity 0 vats of juice $30 1 10 40 25 55 3 45 75 4 70 100 100 130 6. 135 165 a. Calculate average variable cost, average total cost, and marginal cost for each quantity. b. Graph all three curves. What is the relationship between the marginal-cost curve and the average-total-cost curve? Between the marginal-cost curve and the average- variable- cost curve? Explain.

3. Jane's Juice Bar has the following cost schedules: Variable Cost $0 Total Cost Quantity 0 vats of juice $30 1 10 40 25 55 3 45 75 4 70 100 100 130 6. 135 165 a. Calculate average variable cost, average total cost, and marginal cost for each quantity. b. Graph all three curves. What is the relationship between the marginal-cost curve and the average-total-cost curve? Between the marginal-cost curve and the average- variable- cost curve? Explain.

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter12: The Cost Of Production

Section: Chapter Questions

Problem 9PA

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