The table below presents the average and marginal cost of producing cheeseburgers per hour at a roadside diner. Cheeseburger Production Costs Quantity(burgers per hour) Average Variable Cost (dollars) Average Total Cost (dollars) Marginal Cost (dollars) 0 — — — 10 $1.00 $6.60 $1.00 20 0.70 3.50 0.40 30
The table below presents the average and marginal cost of producing cheeseburgers per hour at a roadside diner. Cheeseburger Production Costs Quantity(burgers per hour) Average Variable Cost (dollars) Average Total Cost (dollars) Marginal Cost (dollars) 0 — — — 10 $1.00 $6.60 $1.00 20 0.70 3.50 0.40 30
Chapter22: Supply: The Costs Of Doing Business
Section: Chapter Questions
Problem 14E
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The table below presents the average and marginal cost of producing cheeseburgers per hour at a roadside diner.
Cheeseburger Production Costs
| Quantity(burgers per hour) | Average Variable Cost (dollars) | Average Total Cost (dollars) | Marginal Cost (dollars) |
| 0 | — | — | — |
| 10 | $1.00 | $6.60 | $1.00 |
| 20 | 0.70 | 3.50 | 0.40 |
| 30 | 0.70 | 2.57 | 0.70 |
| 40 | 0.78 | 2.18 | 1.00 |
| 50 | 0.88 | 2.00 | 1.30 |
| 60 | 1.07 | 2.00 | 2.00 |
| 70 | 1.34 | 2.14 | 3.00 |
| 80 | 1.74 | 2.44 | 4.50 |
| 90 | 2.23 | 2.86 | 6.20 |
| 100 | 2.81 | 3.37 | 8.00 |
a. At a quantity of 40 cheeseburgers per hour, the average total cost of production is (Click to select) falling rising at a minimum and the marginal cost of cheeseburger production is (Click to select) falling rising at a minimum .
b. At a quantity of 60 cheeseburgers per hour, the average variable cost of production is (Click to select) falling rising at a minimum and the average total cost of cheeseburger production is (Click to select) falling rising at a minimum .
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