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If a manufacturing firm has fixed costs of $2 million and variable costs of $8 per unit, then what will its average costs be if
If a manufacturing firm has fixed costs of $2 million and variable costs of $8 per unit, then what will its average costs be if it produces 200,000 units? What will its profits be if it sells those 200,000 units for $21 each?
a.$22, $600,000
b.$20, $600,000
c.$18, $600,000
d.$19, $1 million
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