Answer to Question #21134 in Microeconomics for Nooria iftikhar

Question

you want to setting up a lemonades stand. the stand itself costs 200 dollar. the ingredients for each cup of lemonade cost 0.50 dollar.
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 ( there are 16 cups in a gallon ). draw yhe three cost curves.