7. You are thinking about setting up a lemonade bar. The bar itself costs €200 a week to rent. The ingredients for each cup of lemonade cost €0.50.

a. What is your fixed cost of doing business? What is your variable cost per cup?

b. Construct a table showing your total cost, average total cost and marginal cost for output levels varying from 0 to 100 litres. (Hint: there are 4 cups in a litre.) Draw the three cost curves.