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Below in the chart are some concrete examples of both fixed and variable costs of production for a masks manufacturing firm. The variable input is
Below in the chart are some concrete examples of both fixed and variable costs of production for a masks manufacturing firm. The variable input is labor. Quantity of masks produced (Thousands) Variable cost Fixed costs of production (Per Hour) Total cost Average variable cost Average Fixed Cost Average Total cost Marginal cost 0 $ 0 $ 30 1 10 2 25 3 45 4 70 5 100 6 135 a. Complete the above given schedule. b. What is the fixed cost for the mask manufacturing firm? c. Explain what happens to variable cost as more labor is hired? d. At what rate of production is average total cost is at a minimum? a. Why is it important for a company to know what its average total cost per item is? e. What is the marginal cost for producing 4000 masks? f. Explain why marginal cost always cross average tots lost at the minimum? g. Why does average fixed cost always fall
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