Karen runs a print shop that makes posters for large companies. It is a very competitive business. The market price is currently $1 per poster. She has fixed costs of $100. Her variable costs are $1,800 for the first thousand posters, $1,500 for the second thousand, and then $900 for each additional thousand posters. Instructions: Enter your answers rounded to two decimal places. a. What is her AFC per poster (not per thousand!) if she prints 1,000 posters? $ What if she prints 2,000 posters? $ 0.25 What if she prints 10,000 posters? $ b. What is her ATC per poster if she prints 1,000? $ 0.50 $ 0.05 2.3 What if she prints 2,000? What if she prints 10,000?

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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Karen runs a print shop that makes posters for large companies. It is a very competitive business. The market price is currently $1
per poster. She has fixed costs of $100. Her variable costs are $1,800 for the first thousand posters, $1,500 for the second thousand,
and then $900 for each additional thousand posters.
Instructions: Enter your answers rounded to two decimal places.
a. What is her AFC per poster (not per thousand!) if she prints 1,000 posters?
$
What if she prints 2,000 posters?
$
0.25
What if she prints 10,000 posters?
$
b. What is her ATC per poster if she prints 1,000?
$
0.50
$
0.05
2.3
What if she prints 2,000?
What if she prints 10,000?
Transcribed Image Text:Karen runs a print shop that makes posters for large companies. It is a very competitive business. The market price is currently $1 per poster. She has fixed costs of $100. Her variable costs are $1,800 for the first thousand posters, $1,500 for the second thousand, and then $900 for each additional thousand posters. Instructions: Enter your answers rounded to two decimal places. a. What is her AFC per poster (not per thousand!) if she prints 1,000 posters? $ What if she prints 2,000 posters? $ 0.25 What if she prints 10,000 posters? $ b. What is her ATC per poster if she prints 1,000? $ 0.50 $ 0.05 2.3 What if she prints 2,000? What if she prints 10,000?
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