If you run a small courier company as the subcontractor for Australia post, use the cost curves to illustrate which component of your costs will be affected by the petrol price drop.

Identify the type of cost petrol is for the company (variable/fixed cost), and explain the impact of price change on this cost category and total and average cost.

Draw initial cost curves (ATC, AVC, AFC and MC).

Show the change of those curves as a result of the petrol price change, and explain in the text..