Peter’s Publishing House is a business which proof reads, edits,prints and binds dissertations. The fixed cost is £16,000 for anoffice and necessary equipment. Each dissertation involves costsof...

Peter’s Publishing House is a business which proof reads, edits,prints and binds dissertations. The fixed cost is £16,000 for anoffice and necessary equipment. Each dissertation involves costsof £4000. Write down the fixed cost, variable cost and total cost functionsand show them on a diagram. Write down the average variable cost and average total costfunctions. Calculate the level of output (dissertations) which yields theminimum average total cost and minimum average variablecost. Write down the marginal cost function and discuss how itrelates to the AVC and ATC functions. At what level of outputdoes AVC=MC and ATC=MC?