Homework answers / question archive / John is thinking about setting up a doughnut van

John is thinking about setting up a doughnut van

Accounting

Share With

John is thinking about setting up a doughnut van. The van itself costs $200. The ingredients for each doughnut cost $0.50.

a. What is the fixed cost of doing business in the short-run?

b. What is the variable cost per doughnut in the short-run?

c. Construct a table showing doughnut output, total cost, total fixed cost, total variable cost, average total cost, average fixed cost, average variable cost, and marginal cost for producing anything from zero up to and including ten doughnuts.