Healthy Harry's Juice Bar has the following cost schedules:
Q (vats) Variable Cost Total Cost
0 $0 $30
1 10 40
2 25 55
3 45 75
4 70 100
5 100 130
6 135 165
a. Calculate the 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 average-variable-cost curve? Explain.