Simulation 1 Potiential drivers - 10 Fixed cost of driving - $64.00

Round drive today drivers Revenue per hour your driving hours sum of marginal cost profit

1 yes 4 $21.00 10 $100.00 $46.00

2 yes 5 $18.00 9 $81.00 $17.00

3 yes 5 $18.00 9 $81.00 $17.00

4 yes 8 $12.00 6 $36.00 $ -28.00

5 no 5 $18.00 - - $0

• Imagine you own your own business. Based on what you learned from the simulation, what factors would determine your entry and exit into a market?
• Applying the concept of marginal costs, how would you, as a business owner, decide how much to produce?
• How does the impact of fixed costs change production decisions in the short run and in the long run?