A bakery has an average fixed cost per bun of $1 and average variable cost of $1.60 at current production levels. Based on this information, the bakery needs to be able to sell each bun AT LEAST to continue operating in the SHORT RUN. S a. $2.60 b. $1.00 c. $1.60 d. $0.60

A bakery has an average fixed cost per bun of $1 and average variable cost of $1.60 at current production levels. Based on this information, the bakery needs to be able to sell each bun AT LEAST to continue operating in the SHORT RUN. S a. $2.60 b. $1.00 c. $1.60 d. $0.60

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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A bakery has an average fixed cost per bun of $1 and average variable cost of $1.60 at current
production levels. Based on this information, the bakery needs to be able to sell each bun AT LEAST
S to continue operating in the SHORT RUN.
a. $2.60
b. $1.00
c.
$1.60
d.
$ 0.60

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