Complete the table and Graph the cost curves:

Output (Q)/day	Total Variable costs ($)	Total costs (TC) ($)	Marginal costs (MC) ($)	Average Total costs (ATC) ($)	Average Variable costs (AVC) ($)
0	0	635	--	----	----
1	50
2	100
3	150
4	200
5	300
6	400
7	500
8	650
9	800

1. What is the dollar value of the fixed costs in this example?

2. Why do marginal costs, average variable costs, average total cost have a U shape? That is, why do they start out high, get lower, and then higher again?

3. For 7 units of output, what is the average fixed cost? Why does average fixed cost fall as a firm produces more of a good?