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Betty spends $100,000 to buy a small storefront building in downtown Fayette, Iowa. She is an artist and wants to make artistic designs and then
Betty spends $100,000 to buy a small storefront building in downtown Fayette, Iowa. She is an artist and wants to make artistic designs and then screen prints her designs onto t-shirts. She spends $10,000 on a large screen printing machine. Each time she prints a t-shirt, she spends $4 on the plain t-shirt because she wants to use organic cotton shirts. The ink for each shirt costs $1 and she estimates that her labor cost for the production of 1 shirt is $1. What is the average variable cost (AVC) of producing 200 t-shirts
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