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Karen runs a print shop that makes posters for large companies. It is a very competitive business. The market price is currently $1 per poster.
Karen runs a print shop that makes posters for large companies. It is a very competitive business. The market price is currently $1 per poster. She has fixed costs of $500. Her variable costs are $1,800 for the first thousand posters, $1,500 for the second thousand, and then $900 for each additional thousand posters.
Instructions: Round your answers to 3 decimal places.
(a) What is her ATC per poster if she prints 1,000?
(b) What if she prints 2,000?
(c) What if she prints 10,000?
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