Chapter 13 problem 9 a the following table shows

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Chapter 13, Problem 9 a. The following table shows average variable cost (AVC), average total cost (ATC) and marginal cost (MC) for each quantity. Quantity Variable cost Total cost Average variable cost Average total cost Marginal cost 0 0 30 1 10 40 10 40 10 2 25 55 12.5 27.5 15 3 45 75 15 25 20 4 70 100 17.5 25 25 5 100 130 20 26 30 6 135 165 22.5 27.5 35 b. See below for the three curves. The marginal cost curve is below the average total cost curve when output is less than 4, as average total cost is declining. The marginal cost curve is above the average total cost curve when output is above 4, as average total cost is rising. The marginal cost curve is always above the average variable cost curve, and average variable cost is always increasing.
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