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Edward the entrepreneur takes 2 hours to cut a lawn and he cuts 100 lawns per year. He uses solar-powered equipment (truck and mower) that will last forever-and could be sold at any time for$20,000. Edward could earn $20 per hour as a pedicurist. The interest rate is 10 percent.
a. Given his current output level, his marginal cost is $__ (enter your response to the nearest dollar) and his average cost is $_____ (enter your response to the nearest dollar)
b. Suppose he decides to reduce the number of lawns cut by half, to 50 per year. His new marginal cost is $____ (enter your response to the nearest dollar) and his new average cost is $____ (enter your response to the nearest dollar).
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