You are thinking to start your food catering business by making rolled tacos, which are often called taquitos (corn tortillas) and flautas (flour tortillas). As suggested, one important step is to estimate startup costs and prepare the budget. Your estimate shows, on a daily basis, your fixed cost (FC), including rent, utility, fees and tax, is about $300 per day. Your variable cost (VC) is largely depending on the units of labor (variable input) you are going to use. Hiring one labor will cost you $120 per day. Use the information given, to finish the questions below.

(1) The table below presents the cost structure of your taco business. The first two columns give you the number of your output or tacos (Y) and the units of labor inputs. To finish this table, you need to calculate variable cost (VC), total cost (TC), marginal cost (MC), average variable cost (AVC) and average total cost (ATC). Note: MC = TC / Y.

Output, Variable input and Costs (per day)

Tacos	Labor	VC	TC	MC	AVC	ATC
50	1	120	420	0.00
105	2
165	3
230	4
288	5
340	6
385	7
420	8
450	9
460	10

(2) What is the shape of the daily marginal cost (MC) curve, the average variable cost (AVC) curve and the average total cost (ATC) curve? And why they look like that shape? After some study to your long-run average total cost, you find it has a similar shape as the short-run (daily) ATC curve. Why the long-run ATC curve has such a shape?