Taylor Chemicals produces a particular chemical at a fixed cost of $ 1,000 per day. The following table displays how marginal cost varies with output (in cases):

Quantity (Cases)        Marginal Cost

1…………………………..     $ 500

2…………………………..      400

3…………………………..      325

4…………………………..      275

5…………………………..      325

6…………………………..      400

7 …………………………..    500

8…………………………..      625

9 …………………………..    775

10…………………………..    950

Required: 

a. Given the preceding data, construct a table that reports total cost and average cost at various output levels from 1 to 10 cases. 

b. At what quantity is average cost minimized? 

c. Does marginal cost always intersect average cost at minimum average cost? Why?