In a slow year, Deutsche Burgers will produce 2 million hamburgers at a total cost of $3.5 million. In a good year, it can produce 4 million hamburgers at a total cost of $4.5 million.

a. What are the fixed costs of hamburger production?

b. What are the variable costs?

c. What is the average cost per burger when the firm produces 1 million hamburgers?

d. What is the average cost when the firm produces 2 million hamburgers?

e. Why is the average cost lower when more burgers are produced?