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Two car manufacturers, Saab and Volvo, have fixed costs of $1 billion and marginal costs of $10,000 per car. If Saab produces 400,000 cars per

Two car manufacturers, Saab and Volvo, have fixed costs of $1 billion and marginal costs of $10,000 per car. If Saab produces 400,000 cars per year and Volvo produces 200,000 cars per year, calculate the average production cost for each company.

Average production cost for Saab???

Average production cost for Volvo: 15,000

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