Consider the following hypothetical firm that is normally producing 200 units of the product per time period. This firm's average fixed cost is $5, its average variable cost is $6, and its mark-up is 120% (i.e., 1.2). Given this information, answer the following questions: a. The price of the product b. Total revenue c. Variable cost of production d. Fixed cost of production e. Average cost of production
Consider the following hypothetical firm that is normally producing 200 units of the product per time period. This firm's average fixed cost is $5, its average variable cost is $6, and its mark-up is 120% (i.e., 1.2). Given this information, answer the following questions: a. The price of the product b. Total revenue c. Variable cost of production d. Fixed cost of production e. Average cost of production
Chapter6: Proudction Costs
Section: Chapter Questions
Problem 8SQP
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