Follow the instructions below to answer the questions.
12. Daniella owns a small concrete-mixing company. Her fixed cost is the cost of the concrete-batching machinery and her mixer trucks. Her variable cost is the cost of the sand, gravel, and other inputs for producing concrete; the gas and maintenance for the machinery and trucks; and her workers. She is trying to decide how many mixer trucks to purchase. She has estimated the costs shown in the accompanying table based on estimates of the number of orders her company will receive per week. VC Quantity of FC 20 orders 40 orders 60 orders trucks 2 $6,000 $2,000 $5,000 $12,000 4 7,000 1,800 3,800 10,800 6 8,000 1,200 3,600 8,400 a. For each level of fixed cost, calculate Daniella's total cost for producing 20, 40, and 60 orders per week. b. If Daniella is producing 20 orders per week, how many trucks should she purchase and what will her average total cost be? Answer the same questions for 40 and 60 orders per week. )20 orders , 2 trucks- $6000 +$2000 = $8000 40 orders , 2 trucks. $6000 + $5000 = $11000 60 orders , 2 trucks - $6000 + $12 000 = $ 18 100 b 20 orders , 3 trucks - $7000 + $1800 = $8800 40 orders , 3 trucks - $7000 + $3800 =$10800 60 orders , 3 trucks_ $7000 +$10800 = $17800 20 orders , 4 trucks - $8000 13. Consider Daniella's concrete-mixing business described in Problem 12. Assume that Daniella purchased 3 trucks, expecting to produce 40 orders per week. a. Suppose that, in the short run, business declines to 20 orders per week. What is Daniella's average total cost per order in the short run? What will her average total cost per order in the short run be if her business booms to 60 orders per week? b. What is Daniella's long-run average total cost for 20 orders per week? Explain why her short-run average total cost of producing 20 orders per week when the number of trucks is fixed at 3 is greater than her long-run average total cost of producing 20 orders per week. c. Draw Daniella's long-run average total cost curve. Draw her short-run average total cost curve if she owns 3 trucks