Three college students are considering operating a tutoring business in economics. This business would require that they give up their current jobs at the studentrecreation center, which pays $6,000...

Three college students are considering operating a tutoring business in economics. This business would require that they give up their current jobs at the studentrecreation center, which pays $6,000 per year. A fully equipped facility can be leased at a cost of $8,000 per year. Additonal costs are $1,000 a year for insuranceand $0.50 per person per hour for materials and supplies. Their services would be priced at $10 per hour per person.


A) What are fixed cost?
B) What are variable costs?
C) What is the marginal cost?
D) How many students would it take to break even?