CASE STUDY 1: The following table shows a Tesla's total cost of producing Electric (solar powered) cars: Quantity of cars Total Costs of Cars ($) 0 1,000,000 H 1,080,000 2 1,120,000 1,140,000 1,180,000 1,240,000 1,320,000 1,420,000 8 1,600,000 Requirements: a) What will be the fixed cost in the given scenario? b) For each level of output, calculate the variable cost (VC). For each level of output except zero output calculate the average variable cost (A VC), average total cost (ATC), and average fixed cost (AFC). c) What is the minimum-cost output also calculate Marginal Cost (MC)? d) Illustrate your answer with a diagram with AVC, ATC and MC curves? e) Explain why the cost of sugar is a variable cost but not a fixed cost for an ethanol producer. f) When the cost of sugar goes up, what happens to the average total cost curve of an ethanol producer? g) What happens to its marginal cost curve? Illustrate your answer with a diagram