1. Suppose Jake runs a small business that manufactures frying pans. Assume that Jake is a price taker, and the market price is $25 per frying pan. The following table shows Jake's cost structure per hour.
   1. Complete the table by filling in the marginal coast and average cost columns. (15 points)
   2. What is the total amount of fixed costs that Jake faces? (5 points)
   3. What is the optimal quantity of frying pans that Jake should produce and sell? (10 points)
   4. How much profit will Jake make by producing the optimal amount of frying pans? (5 points)
   5. Draw a graph to show Jake's optimal output and profit. Include the marginal cost, average cost and marginal revenue curves in your graph. (5 points)
   6. In class, we talked about how the marginal cost curve and the average cost curve are related. This relationship is also depicted in Jake's production technology. What is the relationship between the marginal cost curve and the average cost curve? (10 points)

Quantity of Frying Pans produced (per hour)	Total Cost (Dollars per hour)
0	20
1	40
2	50
3	55
4	65
5	80
6	100
7	125