Below, you are provided with an equation that gives the total cost of producing various quantities of a good or service. You will use this total cost function to identify the total fixed cost. Total variable cost, average fixed cost, and average variable cost associated with different quantities of output. You will then depict the average cost functions graphically.Lucy operates a lemonade stand in Tampa, FL. Her lemonade really hits the spot on a sweltering summer afternoon. Lucy's total cost of producing her thirst-quenching lemonade is given by the following total cost function:

TC 60 + (2.5 x Q). Where Q is the number of glasses of lemonade she produces each day.

Part 1: Use the total cost function above to complete the table below.

Glasses of Lemonade	Total Fixed Cost	Total Variable Cost
2
4
6
8
10
12

Part 2: use your answer to Part 1 to complete the table below.

Glasses of Lemonade	Average Fixed Cost	Average Total Variable Cost
2
4
6
8
10
12

Part 3: In the graph below, construct Lucy's average fixed cost, average variable cost, and average cost curves.

Glasses of Lemonade

Transcribed Image Text:

$35 $30 $25 $20 $15 $10 $5 2 4 6 8 10 12 $35 $30 $25 $20 $15 $10 $5 2 4 6 8 10 12

Answer rating: 100% (QA)

1 2 Years of Lemonade TFC TVC ... View the full answer