Costs of Production Consider a firm producing sugar candies. The following table shows the production costs of the firm: Sugar candy production Number of Average cost per boxes box 100 10.00 101 10.10 102 10.20 103 10.30 The current output level of the firm is 100 boxes of sugar candies per month. Then a new customer makes an offerto purchase a box of candies at $1 5.00. If the offer is accepted the firm haste increase its production to 101 boxes for the period. Should the firm accept the offer? Explain using marginal analysis. Consider a small business that makes pastries. The business has rented a building to be used as its factory and shop floor. The rent of the building is $2,000 per week. The rest of the firm's weekly costs are as follows: - Income lost from alternative employment - $2.000 . Explicit variable costs - $1,500 . Implicit variable costs -$ 500