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microeconomics question.. please help just #2-4 thank you! Use the following information to answer the next 4 questions: Jess owns a company produces 1,000 pounds

microeconomics question.. please help just #2-4 thank you!

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Use the following information to answer the next 4 questions: Jess owns a company produces 1,000 pounds of ground coffee beans per week. It pays $3 per pound for the ingredients and sells the coffee for $10 per pound. The company pays $250 per month to rent a factory. The company does not have any expenses for office space, because Jess converted a spare bedroom in her house into a small office for her business. If she was not using the room for an office, she could rent it out for $400 per month. 1) What is Average Variable Cost? a. $3 b. 53.25 c. $7 d. 5250 2) What is the accounting profit? a. $6,350 b. $6,750 c. $9,250 d. $10,000 3) What is the economic profit? a. $6,350 b. $6,750 c. $9,250 d. $10,000 4) Which would represent an increase in variable cost for Jess' business? a. Due to increased demand for housing, Jess determines that she could rent out the spare bedroom for $500 an increase of $100 b. The rental rate on the factory increases from $250 to $300 Due to decreased demand for coffee, Jess cuts her prices from $10 per pound to $7 per pound d. Due to a tropical storm, the price of Jess' ingredients increases to $4 per pound e. All of the above

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