Illustrate the connection between Sue's AP, MP, AVC, and MC curves in graphs like those in Fig. 11.7.

Sue’s Surfboards, in Problem 3, hires workers at $500 a week and its total fixed cost is $1,000 a week.

In problem 3

Labor                                 Output

(workers                         (surfboards

per week)                       per week)

1 ……………………..                      30

2 ……………………..                      70

3 ……………………..                     120

4 ……………………..                     160

5 ……………………..                     190

6 ……………………..                     210

7 ……………………..                     220

6 Rising MP a folling MC rising AP and olling AVC Falling MP and rising MC: rising AP and folling AVC Falling MP and falling AP and rising AVC 1.5 2.0 Labor Maximum MP and Minimum MC 12 Maximum AP and Minimum AVC 6 AVC 0 6.5