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suppose it is year 0 right now, and a firm is considering a 2-year contract for producing the quantity of 1 unit in year 1
suppose it is year 0 right now, and a firm is considering a 2-year contract for producing the quantity of 1 unit in year 1 and 100 units in year 2. Fixed costs are $10000 per year and variable costs are $1 per unit. discount rate is 0%. what is the average discounted per-unit cost over the period of the contract?
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