Each primary care physician can see 3400 patients in a year, at an average fee per patient of $155. (Note that there are four primary care physicians in our center.) What is the average variable cost, given the Labor and Other Variable Costs listed? You have information about the number of patients and the fee per patient Does the fee per patient cover the average variable cost? In one or two sentences, explain why coverage of variable cost allows you to know that the output produced by this business is Justified? What is the average total cost given the Capital Cost and Other Fixed Costs listed? Does the fee per patient cover the average total cost? Of the typical fixed costs that a business experiences, which can be postponed, which can be re negotiated, which can be set up In the beginning so that payment isn't due until the business is well-established? Leasing Costs Mortgage payments Loans for Equipment Purchase Discuss some of the ways that use of capital equipment or space can be made more flexible, so that a business has options other than downsizing or bankruptcy if market prices fall