**1.** Davey produces 100 glasses of lemonade with **average total cost** of 50 cents per glass and **average variable cost** of 40 cents per glass. What is Davey's **total fixed cost**?

Since Davey produces 100 glasses of lemonade with **average total cost (ATC)** of 50 cents per glass we know that his **total cost** is just **ATC x Q** or **.50 x 100 = $50.**

We also know that his **average variable cost (AVC)** is 40 cents per glass so his **total variable cost** is just **AVC x Q** or **.40 x 100 = $40.**

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