7. Average variable cost for April Showers:
- is greater than marginal cost at 2 units of output.
- is less than average total cost at two units of output.
- is equal to 20 at four units of output.
- is greater than marginal cost at 4 units of output
- is always decreasing between any two levels of output given to the right.
|
| Data For April Showers |
| Umbrellas | Total Cost |
| 0 | 10 |
| 1 | 15 |
| 2 | 24 |
| 3 | 39 |
| 4 | 60 |
| 5 | 85 |
|
