Output Total cost of... Cost curves Y Labor Food Loan payment Profit TFC TVC TR TC AFC ATC AVC MC S 0 1 10 00 0 20 1 20 2 15 3 20 3 18 6 20 4 20 10 20 5 22 15 20 6 24 23 20 7 26 34 20 8 28 49 9 30 70 10 32 99 2220 1. A restaurant only has 3 inputs: labor, food, and loan payments. The costs of these inputs are given in the table above. Which of these 3 inputs are variable costs, and which are fixed costs? 2. Fill in the cost curve columns in the above table. Assume the price of a meal at the restaurant is $14/meal. (You can calculate them manually if you want, but it will be much easier to use formulas in a spreadsheet.) 3. Graph AFC, ATC, AVC, and MC. (Again, you can do this by hand, but it will be much easier in a spreadsheet.) 4. Answer a couple questions about these curves: a. What is special or significant about the points where the marginal cost curve crosses the AVC and ATC curves? b. Suppose labor at the restaurant is performed by unpaid family members, instead of paid workers. Why would we still want to consider labor costs in our economic analysis?