Table: Cakes Number of misers Fised Average Variable Cest Cests $1.000 S10 1,500 2,500 Use Table: Cakes. Pat is opening a bakery to make and sell special birthday cakes. She is trying to decide how many mixers to purchase. Her estimated fixed and average variable costs if she purchases 1, 2, or 3 mixers are shown in the table. Assume that average variable costs do not vary with the quantity of output. If Pat purchases 1 mixer and bakes 100 cakes per day, what is her average fixed cost? $15 $10,000 $1,000 $10

Table: Cakes Number of misers Fised Average Variable Cest Cests $1.000 S10 1,500 2,500 Use Table: Cakes. Pat is opening a bakery to make and sell special birthday cakes. She is trying to decide how many mixers to purchase. Her estimated fixed and average variable costs if she purchases 1, 2, or 3 mixers are shown in the table. Assume that average variable costs do not vary with the quantity of output. If Pat purchases 1 mixer and bakes 100 cakes per day, what is her average fixed cost? $15 $10,000 $1,000 $10

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Your cousin Vinnie owns a painting company with fixed costs of $200 and thefollowing schedule for variable costs:Calculate average fixed cost, average variable cost, and average total cost for eachquantity. What is the efficient scale of the painting company?
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