You want to start a new business selling the clothes that you make. Your friend has a commercial property and offers you to collaborate. There are two possible collaborations:

• A fix rent of 1500 .

(or)

• A percentage of 5% of your sales.

1. Which of the following curvesaverage fixed cost, average variable cost, average total cost, and marginal costwould shift as a result of the rent? Why?
2. Which of these same four curves would shift as a result of the percentage of sales? Why?
3. What is the relationship between the marginal-cost curve and the average-total-cost curve?