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The next set of questions builds from this story: There is a firm, Colossal Coffee Roasters, Inc., which roasts coffee. If they are roasting c pounds of coffee, then roasting more coffee costs them this much per pound:
3c2 7c 69 100 - 5 + 4
1. Is that math expression above an average cost, a marginal cost, or both, or neither? Explain your answer.
2. For now, suppose they can't roast fractions of pounds. Suppose they were producing 0 pounds of coffee. How many dollars would it cost to roast 1 pound?
3. Draw a pair of axes- with "$ per pound" on the vertical axis and "# of pounds" on the horizontal. On those axes, graphically represent your answer to the previous question as an area.
4. Now, suppose they are roasting 1 pound. How many dollars would it cost to produce a second pound?
5. On the axes from part 3 (but in a different color this time) graphically represent your answer to part 5
as an area.
6. Onthesameaxesfrompart3,graphicallyrepresenthowmanydollarsitwouldcosttoproduceathird, a fourth, and then a fifth pound. Be sure to make clear which area refers to the cost of the third, the fourth, and the fifth pound so we can tell the areas apart.
7. How many dollars does it cost, in total, to roast those first 5 pounds? (We're looking for an answer in the form of a number of dollars; please show the arithmetic you use to arrive at that number).

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M91231253

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