A local pizza shop has hired you as a business consultant to help them compete with national pizza chains. Because most of the business is handled by these national chains, the local shop operates as a price taker. Using historical data on the local pizza shop costs, you find that its short-run total costs are given by , where represents daily pizza production. You also find that the short-run marginal costs are given by .

2.Given short-run total costs, how much are the local pizza shop fixed costs? Provide an explanation to your answer. (This answer should be an exact number.)

3.Given short-run total costs, what mathematical expression would represent the local pizza shop variable costs? Provide an explanation to your answer. (This answer is not a number, it is an equation.)

4.Given the short-run marginal cost, for output higher than 200, how are costs changing and at what rate?