Caroline has a cookie factory, with fixed cost $100

Subject:EconomicsPrice: Bought3

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Caroline has a cookie factory, with fixed cost $100. The table below shows total product and marginal cost for Caroline's firm.

·        Compute all various related measures of costs

·        Caroline is increasing the bookkeeper's salary. How does this affect the various measures of cost?

·        Caroline's small business is a franchise, and she pays a percentage of her sales revenue to the company that grants Caroline the franchising rights. How does this affect the various measures of cost? Explain with words + graph

Total Product Marginal Cost($)

0              0

1              90

2              80

3               70

4                60

5                60

6                 90

7                    90

8                  100

9                  130

10                150