Assume that Don purchased 3 trucks, expecting to produce 40 orders per week.

a. Suppose that, in the short run, business declines to 20 orders per week. What is Don’s average total cost per order in the short run? What will his average total cost per order in the short run be if his business booms to 60 orders per week?

b. What is Don’s long-run average total cost for 20 orders per week? Explain why his short-run average total cost of producing 20 orders per week when the number of trucks is fixed at 3 is greater than his long-run average total cost of producing 20 orders per week.

c. Draw Don’s long-run average total cost curve. Draw his short-run average total cost curve if he owns 3 trucks.