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A stationery firm produces and sells staplers. Last year, it produced 5000 staplers and sold each stapler for $10. In producing the 5000 staplers, it
A stationery firm produces and sells staplers. Last year, it produced 5000 staplers and sold each stapler for $10. In producing the 5000 staplers, it incurred variable costs of $25,000 and a total cost of $45,000.
In producing the 5000 staplers, what was the firm's average fixed cost?
a. $3
b. $4
c. $5
d. $6
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