You are thinking about setting up a lemonade stand. The stand itself costs $200. The ingredients for

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You are thinking about setting up a lemonade stand. The stand itself costs $200. The ingredients for each cup of lemonade cost $0.50.

a. What is your fixed cost of doing business? What is your variable cost per cup?

b. Construct a table showing your total cost, average total cost, and marginal cost for output levels varying from 0 to 10 gallons. Draw the three cost curves.

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Principles of economics

ISBN: 978-0538453042

6th Edition

Authors: N. Gregory Mankiw

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Question Posted: Dec 14, 2012 06:58 AM

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You are thinking about setting up a lemonade stand. The stand itself costs $200. The ingredients for

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a The fixed cost of setting up the lemonade stand is 200 ...View the full answer

Principles of economics

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