The table below shows Crystal's total cost of producing different quantities of tie-dyed t-shirts for a local arts festival. Instructions: Enter your answers as a whole number. a. Complete the marginal cost column in the table. Tie-Dyed T-Shirt Production Costs Total Cost Output 0 (dollars) Marginal Cost (dollars) $15 1 20 $ 2 23 3 25 4 29 5 6 34 43 b. What is the total cost of producing 5 tie-dyed t-shirts? c. What is the marginal cost of producing the 5th tie-dyed t-shirt? $ ns 54

How does fixed cost affect marginal cost? Why is this relationship important?

How do we calculate each of the following: marginal cost, average total cost, and average variable cost?

Average cost curves (except for avenge fixed cost) tend to be U-shaped, decreasing and then increasing. Marginal cost curves have the same shape, though this may be harder to see since most of the marginal cost curve is increasing. Why do you think that average and marginal cost curves have the same general shape?