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Unformatted text preview: a. What is your fixed cost of doing business? What is your variable cost per cup? b. Construct a table showing your total cost, average total cost, and marginal cost for output levels varying from 0 to 10 gallons. (Hint: There are 16 cups in a gallon) Draw the three cost curves. 10. Janes Juice Bar has the following cost schedules: Quantity Variable cost Total cost 0 vats of juice $0 $30 1 10 40 2 25 55 3 45 75 4 70 100 5 100 130 6 135 165 a. Calculate average variable cost, average total cost, and marginal cost for each quantity. Put these numbers in a similar table as above. b. Graph all three curves. What is the relationship between the marginalcost curve and the average total cost curve? Between the marginal cost curve and the average variable cost curve? Explain...
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This note was uploaded on 09/15/2009 for the course ECON 201 taught by Professor Shoonlai during the Summer '09 term at Miami University.
 Summer '09
 SHOONLAI
 Microeconomics

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