Consider Daniella’s concrete-mixing business described in Problem 12. Assume that Daniella purchased 3 trucks, expecting to produce 40 orders per week.

a. Suppose that, in the short run, business declines to 20 orders per week. What is Daniella’s average total cost per order in the short run? What will her average total cost per order in the short run be if her business booms to 60 orders per week?

b. What is Daniella’s long-run average total cost for 20 orders per week? Explain why her short-run average total cost of producing 20 orders per week when the number of trucks is fixed at 3 is greater than her longrun average total cost of producing 20 orders per week.

c. Draw Daniella’s long-run average total cost curve. Draw her short-run average total cost curve if she owns 3 trucks.