1. You start a small business selling clocks made from recycled materials. Fixed costs are $30. Fill in the following table for total cost, average variable cost, average total cost, and marginal cost.

Quantity	Variable Cost	Fixed Cost	Total Cost	Average Total Cost	Average Variable Cost	Marginal Cost
0	0	$30
1	$10	$30
2	$25	$30
3	$45	$30
4	$70	$30
5	$100	$30
6	$135	$30

2. Small firms like your clock making business or the local bakery sometimes exist even though they do not earn economic profits. How can you explain this?

3. What does the long-run average cost curve look like in an industry that is exhibiting economies of scale? How about constant returns to scale? Diseconomies of scale? Please Explain.