Why is it that a firm's capital investments can be positive NPV investments? Choose all that apply.

Firms may enjoy a monopoly advantage in their geographical area.

Firms can earn cash flows on capital investments whose present value exactly covers their ini$-$

tial investment.

Firms can exploit patents or exclusive technology to create a competitive advantage.

Firms can build customer recognition and loyalty for

their products to generate repeat sales.

In a slow year, Deutsche Burgers will produce $3\mathrm{.}5$ million hamburgers at a total cost of $$5\mathrm{.}1$ million. In a good year, it can produce $6\mathrm{.}5$

million hamburgers at a total cost of $$6$ million.

a$.$ What are the fixed costs of hamburger production?

Note: Do not round intermediate calculations. Enter your answer in millions rounded to $3$ decimal places.

b$.$ What is the variable cost per hamburger?

Note: 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?

Note: 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?

Note: Do not round intermediate calculations. Round your answer to $2$ decimal places.

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