Suppose that you operate a business that produces widgets. What's a widget? A widget is a hypothetical product with no particular attributes or features to confuse us. Just widgets. In the course of a month, you produce 5,000 widgets. You only have three inputs when producing widgets; 1) factory space; 2) labor; and 3) raw materials. You pay rent of $4,000 per month. Your use of labor and raw materials depends on how many widgets you produce. When you produce 5,000 widgets, your labor costs are $5,000 and your raw material costs are $1,500. What is your average fixed cost of producing 5,000 widgets? (Enter your answer without a dollars sign ($) in the following form: (i.e., dollars and cents)

Suppose that you operate a business that produces widgets. What's a widget? A widget is a hypothetical product with no particular attributes or features to confuse us. Just widgets. In the course of a month, you produce 5,000 widgets. You only have three inputs when producing widgets; 1) factory space; 2) labor; and 3) raw materials. You pay rent of $4,000 per month. Your use of labor and raw materials depends on how many widgets you produce. When you produce 5,000 widgets, your labor costs are $5,000 and your raw material costs are $1,500. What is your average fixed cost of producing 5,000 widgets? (Enter your answer without a dollars sign ($) in the following form: (i.e., dollars and cents)

Microeconomics

13th Edition

ISBN:9781337617406

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter8: Production And Costs

Section: Chapter Questions

Problem 13QP

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