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QUESTION

Consider the following table regarding the production of Blue Mountain Jamaican coffee.

2. Consider the following table regarding the production of Blue Mountain Jamaican coffee.

Output 

(cases)

Total Fixed 

Costs ($)

Total Variable 

Costs ($)

Total 

Costs ($)

Average Fixed 

Cost ($/case)

Average 

Variable Cost 

($/case)

Average Total 

Cost ($/case)

Marginal Cost 

($/case)

1 150 30

2 50

3 60

4 64

5 90

6 125

7 173

8 238

a) Fill in the missing columns. (6 marks)

b) At what level of output does this coffee plantation experience increasing marginal costs? (1 mark)

c) At what level of output does this coffee plantation experience increasing average total costs? (1 mark)

d) What is the plantation's shutdown price? Explain. (2 mark

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