Steve owns a bike store. His total costs are $1.2M per year, his variable costs are $750,000, and his fixed costs are $450,000 per year. Last year, Steve sold 1,200 bikes. What was Steve's average total cost? What was Steve's average variable cost? What was Steve's average fixed cost?
Steve owns a bike store. His total costs are $1.2M per year, his variable costs are $750,000, and his fixed costs are $450,000 per year. Last year, Steve sold 1,200 bikes. What was Steve's average total cost? What was Steve's average variable cost? What was Steve's average fixed cost?
Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter7: Economies Of Scale And Scope
Section: Chapter Questions
Problem 11MC
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Steve owns a bike store. His total costs are $1.2M per year, his variable costs are $750,000, and his fixed costs are $450,000 per year. Last year, Steve sold 1,200 bikes. What was Steve's
What was Steve's average variable cost?
What was Steve's average fixed cost?
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