Question
Each of the following situations describes a firm's production and costs during a given year. 1. Firm A is producing 100,000 units of output, incurring
Each of the following situations describes a firm's production and costs during a given year. 1. Firm A is producing 100,000 units of output, incurring a total cost of $1,000,000 and total variable cost of $600,000. What is Firm A's average fixed cost? 2. Firm B is producing 10,000 units of output, incurring a total cost of $100,000 and total fixed cost of $20,000. What is Firm B's average variable cost? 3. Firm C is producing 150,000 units of output. Average variable cost is $10 per unit and average fixed cost is $5 per unit. What is Firm C's total cost? 4. Firm D is producing 8000 units of output. Average total cost is $12 and average fixed cost is $4. What is Firm D's total variable cost? 5. Firm E is producing 250 000 units of output, incurring a total cost of $20 million and total variable cost of $18 million. What is Firm E's average fixed cost?
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