Question

need help from part 1 - Part 3

Use MS Excel to solve the following three parts problem. Lesley Business's Juice Bar has the following cost schedules Part 1 - Given the information below, calculate and complete the marginal cost, average variable cost, and average total cost columns. Variable Cost (5) Total Cost ty Vats of juice) 30 10 40 70 100 100 130 135 165 Part 2 - Furthermore, use Excel to plot the marginal-cost curve, the average variable cost curve, and the average-total-cost curve. Use a different color for graphs and plot from left to right and to plot between integers. For example, if the marginal cost of increasing production from 1 vat of juice to 2 vats of juice is $5, then you would plot a point at (1.5, 5)) Then use the purple points (diamond symbol) to plot to start at 1 vat of juice and use the green points (triangle symbol) to plot the average-total-cost curve also starting at 1 vat of juice Part 3- Finally, which of the following statements are true according to the previous graph? Explain your reasons. 1- The marginal-cost curve lies above the average-variable-cost curve. 2- The marginal-cost curve is below the average-total-cost curve when output is less than four and the average total cost is declining. 3- The marginal-cost curve is below the average-total-cost curve when output is greater than four and the average total cost is rising.

Answer 1

Part 1

Q	VC	TC	MC	AVC	ATC
0	0	30
1	10	40	10	10.00	40.0
2	25	55	15	12.50	27.5
3	45	75	20	15.00	25.0
4	70	100	25	17.50	25.0
5	100	130	30	20.00	26.0
6	165	165	35	27.50	27.5

Part 2

6 5 4 0 50 4433 50505050 aud

Part 3 Option 1

Marginal cost curve above minimum AVC represents the short run supply curve a firm would supply hence it is above AVC