Question 2: Imagine you start a chain of private schools. To start up your business, there is a $3,000,000 fixed cost, and the marginal cost is 600Q (where Q is the total number of students being education by schools in the chain). I 1 a. (3 points) Sketch the average total cost, average variable cost, and marginal cost curves for your business over the range Q = [0--15,000 11 FFEE b. (3 points) What number of students could you educate under the three following market-clearing prices? a. $450,000 b. $300,000 C. $50,000 1 d. $3000 1 1 C. (2 points) We have studied that the supply curve is essentially the quantity the firm offers at each price. Graph the supply curve for your business over the set of positive prices where you teach more than 0-students and fewer than 100,000 of them. T 1 d. (2 points) Compare a and c. What is the relationship between marginal cost and supply for your (perfectly competitive) business? || Question 2: Imagine you start a chain of private schools. To start up your business, there is a $3,000,000 fixed cost, and the marginal cost is 600Q (where Q is the total number of students being education by schools in the chain). I 1 a. (3 points) Sketch the average total cost, average variable cost, and marginal cost curves for your business over the range Q = [0--15,000 11 FFEE b. (3 points) What number of students could you educate under the three following market-clearing prices? a. $450,000 b. $300,000 C. $50,000 1 d. $3000 1 1 C. (2 points) We have studied that the supply curve is essentially the quantity the firm offers at each price. Graph the supply curve for your business over the set of positive prices where you teach more than 0-students and fewer than 100,000 of them. T 1 d. (2 points) Compare a and c. What is the relationship between marginal cost and supply for your (perfectly competitive) business? ||