We saw in the chapter opener that some colleges and private companies have launched online courses that anyone with an Internet connection can take. The most successful of these massive open online courses (MOOCs) have attracted tens of thousands of students. Suppose that your college offers a MOOC and spends a total of $200,000 on one-time costs to have instructors prepare the course material and to buy additional server capacity. The college administration estimates that the variable cost of offering the course will be $20 per student per course. This variable cost is the same, regardless of how many students enroll in the course.

a. Use this information to fill in the missing values in the table:

b. Use your answer to part (a) to draw a cost curve graph to illustrate your college's costs of offering this course. Your graph should measure cost on the vertical axis and the quantity of students taking the course on the horizontal axis. Be sure your graph contains the following curves: average total cost, average variable cost, average fixed cost, and marginal cost.

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Number of Average Average Average Total Variable Students Fixed Taking the Course Marginal Cost Cost Cost Cost 1,000 10,000 20,000