# Average total cost will increase average variable

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Average total cost will increase.Average variable cost will increase.
Average fixed cost will increase.Marginal cost will remain unchanged.Points:1 / 1Close ExplanationExplanation:The lump-sum tax causes an increase in fixed cost. Therefore, only average fixed cost and averagetotal cost will rise in this case.A per-unit tax increases variable cost at an increasing rate. For example, it increases the variable costof producing 20 burgers by \$20, but it increases the variable cost of producing 21 burgers by \$21.Therefore, average variable cost, average total cost, and marginal cost will all be greater under thisproposal, and average fixed cost will be unaffected. See Sections: Fixed and Variable Costs; andAverage and Marginal Cost.
8. Firm’s RevenueA firm in a competitive market receives \$960 in total revenue and has marginal revenue of \$20.The firm's average revenue isPoints:1 / 1Close Explanation
9. Firm’s Cost ScheduleJane's Juice Bar has the following cost schedules:In the following table, complete the marginal cost, average variable cost, and average total costcolumns.
QuantityVariableCostTotalCostMarginalCostAverageVariable CostAverage TotalCost(Vats ofjuice)(Dollars)(Dollars)(Dollars)(Dollars)(Dollars)003010.001104010.0040.0015.002255512.5027.5020.003457515.0025.0025.0047010017.5025.00
QuantityVariableCostTotalCostMarginalCostAverageVariable CostAverage TotalCost(Vats ofjuice)(Dollars)(Dollars)(Dollars)(Dollars)(Dollars)30.00510013020.0026.0035.00613516522.5027.50Points:1 / 1Close Explanation
Average Variable CostAverage VariableCost==Variable CostQuantityVariable CostQuantity==\$101\$101==\$10\$10Average total costis total cost divided by the quantity of output. It represents the cost of a typicalunit of output if total cost is divided evenly over all the units produced. Therefore, you can computethe average total cost of the first unit in the following way:Average Total CostAverage TotalCost==Total CostQuantityTotal CostQuantity==\$401\$401==\$40\$40Similar calculations can be made to complete the remainder of the table. See Section: Average andMarginal Cost.On the following graph, use the orange points (square symbol) to plot the marginal-cost curve forJane's Juice Bar. (Note: Be sure to plot from left to right and to plot between integers. For example, ifthe marginal cost of increasing production from 1 vat of juice to 2 vats of juice is \$5, then you would

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