Digital economy

3. Consider the cost of the family business, i.e. a tutoring school, as the following table. Fixed Costs Labor Variable Cost Total Cost Total Output ($) (Units) ($) ($) (Units) 5000 2000 7000 10 5000 2 6000 11000 25 5000 LU 9000 14000 45 5000 4 12000 17000 58 5000 5 15000 20000 65 5000 6 18000 23000 90 a) Calculate the output at Minimum Production Cost (15 points) and b) The owner is going to change the business to only-online busi- ness what will be changed (5 points) and what will be the new output of Minimum Production Cost (5 points)