Question 1: Given the following information about the costs of a given firm: Output AFC, SAVC, S 1 50.00 100.00 2 25.00 80.00 3 16.67 66.67 4 12.50 65.00 5 10.00 68.00 9 8.37 73.33 7 7.14 80.00 8 6.25 87.50 Answer the following questions: a. What is the firm's fixed cost? b. If the firm produces five units, what is the average total cost? c. What is the total cost of producing four units? d. If the firm closes down and produces no output, what will be its total cost? e. If the firm decides to increase its output from 6 to 7 units, by how much will its total cost increase? Question 2: Clearly state what do we mean by the Costs of Production? Question 3: Why total cost curve is U-Shaped?