You manage Gofer Delivery Service. You rent a truck for $50 per day, and each delivery takes an hour of labor time. The hourly wage is $8.

a. Draw a curve showing the relationship between the number of deliveries (on the horizontal axis) and your total cost (on the vertical axis). Draw the curve for between 0 and 20 deliveries.

b. The slope of the cost curve is __________-per_______________.

c. To draw the curve, what variables are held fixed?

d. A change in would cause a movement upward along the curve.

e. Changes in would cause the entire curve to shift upward.