Principles of Economics, 7th Edition

Published by South-Western College
ISBN 10: 128516587X
ISBN 13: 978-1-28516-587-5

Chapter 13 - Part V - The Costs of Production - Problems and Applications - Page 277: 9

Answer

a) Please see the table. b) Please see the graph.

Work Step by Step

a) The table has been updated to show the average variable cost, the average total cost, and the marginal cost for each quantity. b) The average total cost curve spikes at small quantities but eventually goes below the marginal cost curve. The average variable cost and the marginal cost curves are the same curve at certain quantities, but the marginal cost curve goes below the marginal cost curve.
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