Milk (gallons) Cost: homemade shoes 1.00 Net price: factory shoes 0.40 - 0.30 10 Distance from factory Figure 3.3: A shi

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Milk Gallons Cost Homemade Shoes 1 00 Net Price Factory Shoes 0 40 0 30 10 Distance From Factory Figure 3 3 A Shi 1 (36.71 KiB) Viewed 30 times

Milk (gallons) Cost: homemade shoes 1.00 Net price: factory shoes 0.40 - 0.30 10 Distance from factory Figure 3.3: A shipping problem In the second part, some simple calculations are required. Use the figure below. Show all calculations by hand where applicable. 1. Highlight on the figure the service range of a company with an av- erage total cost per product of a prior to shipping. 2. Find the total cost, (TC) excluding shipping of that company. Recall you have the ATC on the figure. 3. Assume the customers pay $1.00 to the company to get the shoes. How much does the company pay in shipping to provide for their service area? 4. What is the companies profit, ut? 5. Suppose the customers paid 80.3 per shoe instead, but the customers also paid shipping. What would be the consumer surplus in that case?