Questions:

I. Tom runs a house cleaning service. He's fixed costs are $7 per day, and his variable costs are provided in the following table. Complete the table by finding Tom's total cost, average total cost, average variable costs, and his marginal costs of production. Graph average total costs, average variable costs, and marginal costs in the figure. VC TC ATC AVC MC DO V A UT A WN - O $0.00 2.00 3.50 5.50 8.00 1 1.00 15.00 21.00 29.00 39.00 a. If the market price of cleaning house is $9 per house, how many house will Tom clean? What is his profit? Show your answer graphically. b. At what price will Tom just break even? c. At what price for house cleaning will Tom earn a loss but continue to produce in the short run? d. At what price for house cleaning will Tom shut down his house cleaning services? e. Identify Tom's short-run individual supply curve on your graph