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

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

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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