Question
A shirt company spends $1,000 per week on rent for its factory. Each shirt made at the factory requires $2 worth of cloth and $8
A shirt company spends $1,000 per week on rent for its factory. Each
shirt made at the factory requires $2 worth of cloth and $8 worth of labour and energy. Answer the following questions assuming that the factory produces 500 shirts per week.
a) What is the average cost of a shirt?
b) What is the marginal cost of a shirt?
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Microeconomics Theory and Applications with Calculus
Authors: Jeffrey M. Perloff
3rd edition
133019934, 978-0133019933
