This module has focused on different business costs.  Here is the current price for the ingredients for baking chocolate chip cookies. For simplicity, assume the ingredients for three dozen cookies are:

  • One 16 oz box of sugar: $3.29
  • One 12 oz bag of chocolate chips: $2.69
  • One 2 lb. bag of flour: $1.99
  • One dozen eggs: $2.79
  • A fixed cost of $30 to rent a kitchen with an oven for a day
  • Assume in an hour you can bake 2 dozen cookies and that the cost of your time is $10 an hour

In a paper:

  • Calculate the average total cost, average variable cost, average fixed cost, and marginal cost for baking one dozen, two dozen, three dozen, four dozen, five dozen, six dozen, seven dozen, eight dozen, nine dozen, and ten dozen cookies.  Show your work for the calculations and create a table with just cost numbers.
  • Create the graphs for each of the cost numbers.  Graph them on the same graph.
  • Recalculate the costs assuming the cost to rent the kitchen with an oven dropped to $15.
  • Compare the new calculations with the old calculations.

Adhere to the following standards:

  • Your paper should be 3-4 pages in length, not including the title or references pages.
  • Include at least 3 scholarly references.
  • The Economics Library Guide (Links to an external site.) is a good tool to use to start your research (sources such as The Balance,, Investopedia, and similar websites are not acceptable).

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