Larraine is the only jembe drum producer in Caltouse.She can sell a single drum for $80 but must drop her price by $5 for every extra drum she wants to sell.Her total fixed costs are $60 and the variable cost of the first drum produced is $36.For each drum thereafter,the variable costs drop by $4 up to and including the fourth drum.After that,the cost of each additional drum increases by $4.
a)Draw the AR,MR,AC,and MC curves on the figure below.

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The Answer of Larraine is the only jembe drum producer in Caltouse.She can sell a single drum for $80 but must drop her price by $5 for every extra drum she wants to sell.Her total fixed costs are $60 and the variable cost of the first drum produced is $36.For each drum thereafter,the variable costs drop by $4 up to and including the fourth drum.After that,the cost of each additional drum increases by $4.
a)Draw the AR,MR,AC,and MC curves on the figure below.

Larraine Is the Only Jembe Drum Producer in Caltouse