Note that Tulip growing is a “perfectly” competitive industry, and all tulip growers have the same cost curves (or schedule) with the standard U shaped Average Total Cost curve. The market price of tulip is $15 a bunch, and each grower maximizes profit by producing 1,500 bunches per week. At the profit maximizing output, the average total cost of producing tulip is $10 a bunch and the average variable cost is $8 a bunch.
a) Graph the referenced cost curves for a tulip growing business.