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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
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.
- What are the fixed costs of hamburger production? (Enter your answer in millions rounded to 1 decimal place.)
- What are the variable costs when the firm produces 2 million hamburgers? (Enter your answer in millions.)
- What is the average cost per burger when the firm produces 1 million hamburgers? (Round your answer to 2 decimal places.)
- What is the average cost when the firm produces 2 million hamburgers?
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