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Solve clearly... Question 2 Jackson operates a bakery selling chocolate sponge cake. The following table illustrates the initial production costs. Output TVC (cakes per week)

Solve clearly...

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Question 2 Jackson operates a bakery selling chocolate sponge cake. The following table illustrates the initial production costs. Output TVC (cakes per week) TC ($) 100 ($) 2,000 200 7.000 4.000 300 9.000 6,000 1 1,000 400 8,000 13,000 Note: Each sponge cake uses 0.1 kg of flour and 6 large eggs a) Due to strong demand from customers, Jackson bought a new oven that costs $500, At the same time, some baking ingredients became more expensive. Price of each egg increased by 10 cents while price of flour increased by $2.00 per kg. Taking all these changes into consideration, fill in the following table: Output TVC TO AFC MC (cakes per week) (S) (S) ($) (S) 100 200 300 400 (8 marks) b) Sketch the Total Fixed Costs and Average Fixed Costs graphs, (2 marks)

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