You are one of 5 identical firms (i. e., you all have the same costs) that sell widgets. Each day you have a fixed cost of $9 to operate. The marginal cost of your first widget is $1; second is $2; third $3; fourth $7; and for the fifth it is $8. You have a capacity constraint of 5, and you can only produce a whole number of widgets. Part 2 The AVC for a firm that produces 2 widgets is $ enter your response here. (Round your answer to 2 decimal places as needed)

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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You are one of 5 identical firms (i. e., you all have the same costs) that sell widgets. Each day you have a
fixed cost of $9 to operate. The marginal cost of your first widget is $1; second is $2; third $3; fourth $7;
and for the fifth it is $8. You have a capacity constraint of 5, and you can only produce a whole number
of widgets. Part 2 The AVC for a firm that produces 2 widgets is $ enter your response here. (Round
your answer to 2 decimal places as needed)
Transcribed Image Text:You are one of 5 identical firms (i. e., you all have the same costs) that sell widgets. Each day you have a fixed cost of $9 to operate. The marginal cost of your first widget is $1; second is $2; third $3; fourth $7; and for the fifth it is $8. You have a capacity constraint of 5, and you can only produce a whole number of widgets. Part 2 The AVC for a firm that produces 2 widgets is $ enter your response here. (Round your answer to 2 decimal places as needed)
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