Adam operates a factory that produces beach towels. His current level of output equals 2000 towels per week. His weekly variable cost equals $12 000. If the total cost each week equals $13 500, what can you conclude about the fixed costs of production? The total cost equals $25 500. The total fixed cost equals $12.75 per towel. The average fixed cost equals 75 cents per towel. The average fixed cost equals $1500.
Adam operates a factory that produces beach towels. His current level of output equals 2000 towels per week. His weekly variable cost equals $12 000. If the total cost each week equals $13 500, what can you conclude about the fixed costs of production? The total cost equals $25 500. The total fixed cost equals $12.75 per towel. The average fixed cost equals 75 cents per towel. The average fixed cost equals $1500.
Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter4: Extent (how Much) Decisions
Section: Chapter Questions
Problem 3MC
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