In a slow year, Deutsche Burgers will produce 2.000 million hamburgers at a total cost of $4.100 million. In a good year, it can produce 5.000 million hamburgers at a total cost of $5.600 million.

a.What are the fixed costs of hamburger production?(Do not round intermediate calculations. Enter your answer in millions rounded to 1 decimal place.)

b.What is the variable cost per hamburger?(Do not round intermediate calculations. Round your answer to 2 decimal places.)

c.What is the average cost per burger when the firm produces 1 million hamburgers?(Do not round intermediate calculations. Round your answer to 2 decimal places.)

d.What is the average cost per burger when the firm produces 2 million hamburgers?(Do not round intermediate calculations. Round your answer to 2 decimal places.)

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

• The fixed costs are spread across more burgers.
• Variable costs are lower per burger.
• Fixed costs are constant per burger.