Verify that the relationship between the ap and mp curves

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Bernie's Bagels can function with three different oven capacities. For any given amount of labour, a larger output can be produced with a larger-capacity oven. The cost of a small oven is $100; the cost of a medium-sized oven is $140; and the cost of a large oven is $180. Each worker is paid $60 per shift. The production levels for each plant size are given in the table below.

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(a) Compute and graph AP and MP curves for each size of operation.

(b) Verify that the relationship between the AP and MP curves is as it should be.

Reference no: EM131072448

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