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What do the marginal and average cost functions look like

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Reference no: EM132473326

For Apple-Cinnamon Cheerios, we assumed the average cost was constant, so that the unit cost of a pound of cereal was equal to $2, regardless of the quantity produced.

1. Draw the cost function (also called the total cost curve) for this case.

2. What do the marginal and average cost functions look like?

3. Now suppose that the marginal cost of producing a pound of Cheerios was $2, whatever the quantity, but there were also some fixed production costs. Draw the total, marginal, and average cost curves in this case.

Reference no: EM132473326

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