Problem-Based Learning Cost of Production Scenario 1: Preparation for New Business Shawn wants to start a new business by selling watermelon juice. In particular, he withdrew $500,000 of his saving from the commercial bank to cover his expense (for new business). Below is a list of costs associated with the production inputs: Table 1 Items Rent (Location) Wage Ingredient Machine Rental Electricity Fee Advertisement Fee Straw Table Rental Plastic Cup Plastic Cup Lids Plastic Bag Decoration Service Fee Cost $2,000 per day $160 per hour $6 per cup of juice $14 per day $21 per hour $73 per day $0.12 per straw $5.5 per day $0.7 per cup $0.1 per lid $0.5 per bag $35 per day Problem 1: Do we take into consideration the investment funds, Shawn's deposit ($500,000), when we compute the economic cost? Why? Problem 2: In Economics, we generally divide the production inputs into two categories, fixed input and variable input. Could you please categorize the production inputs, listed in Table 1, into fixed and variable inputs?